McDonald Sales Prepared a Debenture Issue of $20 000 Dated

Multiple Choice

McDonald Sales prepared a debenture issue of $20 000 dated 1 January 2013. The debentures have a stated rate of 3% and a term of 6 years. The debenture issue was delayed, and the debentures were finally sold on 1 March 2013 at par. On 30 June 2013, the first half- yearly interest payment is made. How much is the total amount of interest expense McDonalds will record for the first half of 2013?

A) $350
B) $600
C) $200
D) $300