On January 1,2010,a Corporation Issued a $400,000,12% Bond

Multiple Choice

On January 1,2010,a corporation issued a $400,000,12% bond.The interest is payable semi-annually on June 30 and December 31.The issue price was $413,153 based on a 10% market interest rate.Assuming the effective-interest method of amortization is used,what is the interest expense for the six-month period ending June 30,2010 (to the nearest dollar) ?

A) $24,000
B) $24,789
C) $20,000
D) $20,658