Bonds Issued at a Discount, Redeemed at a Gain Cline & Co. issued the following bonds at a discount:
Date of issue and sale: April 1, 20-1
Principal amount: $480,000
Sale price of bonds: 98
What is the amount of discount on the bonds?
a) $9,600
b) $4,800
c) $48,000
d) $9,280