Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
Alliance Corp. issued a $500,000, 8%, 10-year bond on March 1, 2010. The bond pays interest semi-annually on March 1 and September 1. At the time of issue, the market rate of interest was 10% and the bond sold for $437,700.
-How much interest expense did Alliance recognize on December 31, 2010?

A) $ 0
B) $13,333
C) $14.590
D) $15,410
E) $17,583