Clay, Inc., finances its capital needs approximately one-third from noncurrent debt and two-thirds from equity. At December 31, Year 4, Clay had the following liability and equity account balances:

11% debenture bonds payable, face amount		$5,000,000
Premium on bonds payable		352,400
Common stock		8,000,000
Additional paid-in capital		2,295,000
Retained earnings		2,465,000
Treasury stock, at cost		325,000

Transactions during Year 5 and other information relating to Clay's liabilities and equity accounts were as follows:

• The debenture bonds were issued on December 31, Year 2, for $5,378,000 to yield 10%. The bonds mature on December 31, Year 17. Interest is payable annually on December 31. Clay uses the interest method to amortize bond premium.
• Clay's common shares are traded on the over-the-counter market. At December 31, Year 4, Clay had two million authorized shares of $10 par common stock.
• On January 15, Year 5, Clay reissued 15,000 of its 25,000 shares of treasury stock for $225,000. The treasury stock had been acquired on February 28, Year 4.
• On March 2, Year 5, Clay issued a 5% stock dividend on all issued shares. The market price of Clay's common stock at time of issuance was $14 per share. Payment of stock dividends on treasury stock is not prohibited in Clay's state of incorporation.
• On November 1, Year 5, Clay borrowed $4 million at 9%, evidenced by an unsecured note payable to United Bank. The note is payable in five equal annual principal installments of $800,000. The first principal and interest payment is due on November 1, Year 6.
• On December 31, Year 5, Clay owned 10,000 shares of Ryan Corp.'s common stock, a 1% ownership interest. Clay accounts for these securities as a noncurrent investment. The stock was purchased on May 1, Year 4, at $20 per share. The market price was $21 per share on December 31, Year 4, and $18 per share on December 31, Year 5.
• Clay's net income for Year 5 was $2,860,000.

Complete the noncurrent liabilities section of Clay's December 31, Year 5, balance sheet shown in the schedule below. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values.

Clay, Inc. NONCURRENT LIABILITIES SECTION OF BALANCE SHEET December 31, Year 5

Note payable to bank
Beginning balance of debenture bonds payable and unamortized premium
Amortization of bond premium
Interest paid
Minus effective interest
Debenture bonds payable and unamortized premium
Total noncurrent liabilities