On January 2, 2003, Banno Corporation issued $1,500,000 of 10% bonds at 97 due December 31, 2012. Legal and other costs of $24,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31. The $24,000 bond issue costs are being deferred and amortized. The discount on the bonds is also being amortized.
The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2008, Banno called $900,000 face amount of the bonds and retired them. For the bonds called, unamortized bond discount at retirement was $13,500, and unamortized bond issue cost was $7,200.