22.

ill in Blank. On October 1, 2019, Aries Claw Inc. (a calendar-year firm) issues 6,000 of corporate bond, each with face value $ 1,000, stated interest rate 8%, and maturity date set at Oct 1st, 2024. Interest is payable at each April 1st and Oct 1st after issuance date. Under effective interest rate method, Aries presents the following bond discount/premium amortization schedule: Cash Paid Interest Expense Amort. Discount/Premium October 1, 2019 April 1, 2020 October 1, 2020 April 1, 2021 Carrying Value of Bonds $5,536,676 5,573,510 5,612,186 $240,000 240.000 $276,834 278,676 $36,834 38,676 What is the interest expense to be reported in the income statement for the year ended December 31, 2020