Question: On January 2 , 2 0 2 5 , $ 1 0 0 , 0 0 0 of 1 0 % , 1 0 -

On January 2,2025, $100,000 of 10%,10-year bonds were issued for $96,000. The $4,000 discount was charged to Interest Expense. The bookkeeper, Gary, records interest only on the interest payment dates of June 30 and December 31.
(a1)
What is the effect on reported net income for 2025 of this error, assuming straight-line amortization of the discount?
On January 2 , 2 0 2 5 , $ 1 0 0 , 0 0 0 of 1 0 %

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