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  3. best, inc, issued $800,000 (face value) of its 9%

Best, Inc, issued $800,000 (face value) of its 9% (face rate), five-year bonds dated January...

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Accounting

Best, Inc, issued $800,000 (face value) of its 9% (face rate), five-year bonds dated January 1, 2021, on May 1, 2021, for $786,000 plus accrued interest, Interest is paid on January 1 and July 1 and straight-line amortization is used. Immediately after the interest payment has been recorded on July 1, 2021, the balance of interest expense is

a. $24,000

b. $36,000

c. 12,500

d. 25,000

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