Exhibit 14-6 Alpha, Inc

Multiple Choice

Exhibit 14-6 Alpha, Inc.issued $100, 000 of its 7% five-year bonds on January 1, 2010, at 98.Interest is paid on January 1 and July 1.The bonds are callable at 103 and straight-line amortization is used.The bonds are recalled on April 1, 2012.
-
Refer to Exhibit 14-6.Interest expense for 2012 will be

A) $1, 750
B) $1, 800
C) $1, 850
D) $1, 900