Bonds Payable Have a Face Amount of $1,000,000 and a Discount

Multiple Choice

Bonds payable have a face amount of $1,000,000 and a discount of $10,000.The face interest rate is 9 percent and the effective interest rate is 10 percent.If the annual interest payment is due today,what amount of interest expense should be recorded?

A) $100,000
B) $ 99,000
C) $ 90,000
D) $ 89,100