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A company is estimating its costs based on past information. The total costs incurred by the company at different levels of output were as follows:
Output Total costs
(units) $
160,000 2,420,000
185,000 2,775,000
190,000 2,840,000
The company uses the high-low method to separate total costs into their fixed and variable elements. Ignore inflation.
The estimated total costs for an output of 205,000 units is
Assuming that Patel Company uses the straight-line method, what is the amount of premium amortization that would be recognized in 2017 related to these bonds?
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