On January 1, 2020, Nickle Entertainment Inc. purchased a 4%, $50,000 Imax bond for $46,490. Interest is to be paid semiannually each June 30 and December 31. Nickle Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2020, and June 30, 2020, based on the partial amortization schedule shown below.

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Cash Interest Received Period Carrying Value Discount Amort. Interest Income Unamortized Discount Perlod Ending 1/20 Jan. June 30/20 Dec. $46,490 46,885 47,292 $3,510 3,115 2,708 $395 407 $1,395 1,407 $1,000 1,000 1/20