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

Multiple Choice

On January 1, 2010, the Baker 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, 2014. Baker records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2010, is

A) $4,000
B) $4,200
C) $5,400
D) $5,800