On January 1, 2014, the Horton Corporation Issued 10% Bonds

Multiple Choice

On January 1, 2014, the Horton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $192,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2018. Horton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2014, is

A) $10,800
B) $18,400
C) $21,600
D) $28,000