On January 1,Melrose Manufacturing Issues a 5-Year Bond with a Face

Multiple Choice

On January 1,Melrose Manufacturing issues a 5-year bond with a face value of $15,000 and a stated interest rate of 7%.The market interest rate is 5%.The issue price of the bond was $16,299.Using the effective-interest method of amortization and rounding to the nearest dollar,the interest expense for the first year ended December 31 would be:

A) $750.
B) $814.95.
C) $1,050.
D) $1,140.93.