Lowfood Corporation issued 10-year USD5,000,000 8 percent bonds on March 1, 2012, with a maturity date of March 1, 2022. The bonds were sold at a 10% market rate, and the total proceeds received by Lowfood equal the market value plus accrued interest. Interest is paid on March 1st and September 1st of each year. What is the amount of interest expense that will be recognized for the year ended December 31, 2014, and b) what is the balance of unamortized discount in the balance sheet as of December 31, 2018?

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