Answer:
$285,500
Explanation:
Since Kimbrough sold its bonds at a discount, it must amortize the discount amount to interest expense over the bonds' lifespan. In this case, the discount was $5,000,000 - $4,695,000 = $305,000.
the amortization of discount for 2017 = ($5,000,000 x 9%) - ($4,695,000 x 10%) = $450,000 - $469,500 = -$19,500
the unamortized bond discount balance = $305,000 - $19,500 = $285,500
