On January 1, the Elias Corporation Issued 10% Bonds with a Face

Multiple Choice

On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000. The bonds are sold for $46,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is

A) $5,000
B) $5,200
C) $5,800
D) $5,400