Bayside Incorporated issues $1,000,000 face value, 8%,5-year bond on February 1,2023. Interest is paid semiannually...

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Accounting

Bayside Incorporated issues $1,000,000 face value, 8%,5-year bond on February 1,2023. Interest is paid semiannually each July 31 and January 31. The bonds sell at a price of 95; Bayside uses the straight-line method of amortizing bond discount or premium.
Interest expense recorded in the financial statements of Bayside for the period ended at July 31,2023 will be:
Select one:
a. $45,000.
b. $40,000.
C. $80,000.
d. $35,000.
Clear my choice
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