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% effective (market) interest rate.Assuming the effective-interest method of amortization is used,what is the interest expense for the six-month period ending December 31,2010 (to the nearest dollar) ?
A) $24,000
B) $20,491
C) $20,000
D) $20,825
Correct Answer:
Verified
Correct Answer:
Verified
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