Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest...
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Accounting
Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market rate of interest on the date of issue was 8%. Assuming effective interest method of amortization, calculate the bond interest expense on the first interest payment date.
| A. | $117,618 | |
| B. | $ 48,000 | |
| C. | $ 58,809 | |
| D. | $129,774 |
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