1) McDougal Company sold a $500,000, 5-year, 9% APR bond issue on January 1, 2019 for a selling price of $480,595. The bonds pay interest semiannually on June 30 and December 31. The effective rate is 10% APR. McDougal incurred bond issue costs of $15,140 and will use the effective interest method to amortize any premium/discount and debt issuance costs. McDougal determined that the revised effective rate is 10.82% APR. Determine Bond Interest Expense for the year ended December 31, 2019:

A) $48,146

B) $46,555

C) $50,373

D) $50,507

2) McDougal Company sold a $500,000, 5-year, 9% APR bond issue on January 1, 2019 for a selling price of $480,595. The bonds pay interest semiannually on June 30 and December 31. The effective rate is 10% APR. McDougal incurred bond issue costs of $15,140 and will use the effective interest method to amortize any premium/discount and debt issuance costs. McDougal determined that the revised effective rate is 10.82% APR.

Determine Bond Interest Expense for the year ended December 31, 2019:

A) $48,146

B) $46,555

C) $50,373

D) $50,507