Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a t

Question

Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds. Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 1/1/12 8,640,967 06/30/2012 300,000 345,639 45,639 8,686,606 12/31/2012 300,000 347,464 47,464 8,734,070 06/30/2013 300,000 349,363 49,363 8,783,433 12/31/2013 300,00 351,337 51,337 8,834,770 What is the interest expense on the bonds in 2012? A .$693,103. B $600,000. C $345,639. D $347,464.

Explanation / Answer

b is 100% corect answer

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