20 A company issued 5-year, 9.00% bonds with a par value of $115,000. The market rate when the bonds were issued was 8.50%. The company received $117,420 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is: O $4,990.35. O $2,587.50. O $9,917.78. O $5,175.00. O $10,350.00. QUESTION 9 Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the straight- line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is: $9,600. O $0. O$20,000. $4,000 $4,800