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ABC Company issues $12,000,000, 6.5%, 20-year bonds on January 1, 2017. The bonds are priced...

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Accounting

ABC Company issues $12,000,000, 6.5%, 20-year bonds on January 1, 2017. The bonds are priced to yield an effective interest rate of 7%. Interest is paid semiannually on June 30 and December 31. The proceeds from the bond issuance are $11,359,348. Using effective-interest amortization, how much interest expense will be recognized for the year ended December 31, 2017? (Round answer to nearest dollar)a.$390,000 b.$397,577 c.$795,420 d.$780,000

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