On january 1, mallory company issued $400,000 of 8%, 5-year bonds when the market rate of interest was 6%. the bonds were issued for $433,698 and interest will be paid annually on december 31. how much premium amortization will mallory record on the first interest payment date using the effective-interest method?

- 0
- 26,021.88
-32,000
-5,978.12