On january 1, $5,000,000, 10-year, 10% bonds were issued at $5,200,000. interest is paid annually each january 1. the straight-line method of amortization is used to amortize the premium. how much premium is amortized at the end of the first year?

$20,000 premium is amortized at the end of the first year.

Explanation:

Straight line amortization:

premium amortized = Premium / number of years

                                 = ($5,200,000 - $5,000,000) / 10 years

                                 = $200,000 premium / 10 years

                                 = $20,000

Therefore, $20,000 premium is amortized at the end of the first year.

answer; dividing net income by 1- t ;