InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this...
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Accounting
InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this year, InterTech issued $4,350,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did InterTech record this year for the December 31 payment?
Select one:
a. None of these are correct.
b. $174,000
c. $115,294
d. $153,725
e. $195,856
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