A Government Has $3,000,000 of 6%, 10-Year General Obligation Bonds

Multiple Choice

A government has $3,000,000 of 6%, 10-year general obligation bonds outstanding. The bonds were issued on July 2, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on January 1 and July 1. What is the minimum amount of interest expenditures that the government would be permitted to report on the bonds for 20X7?

A) $0
B) $30,000
C) $90,000
D) $180,000