On January 1, 2010, the Horton Corporation Issued 10% Bonds

Multiple Choice

On January 1, 2010, the Horton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $196,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2014. Horton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2010, is

A) $19,800
B) $19,200
C) $20,800
D) $24,000