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22. Jorge Corp issued $540,000 of 6%, 10-year bonds on January 2, 2018 for $530,000. In addition, the company incurred $50,000 in bond issue costs.

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22. Jorge Corp issued $540,000 of 6%, 10-year bonds on January 2, 2018 for $530,000. In addition, the company incurred $50,000 in bond issue costs. Interest is paid annually on December 31. What is the correct amount of bond interest expense to be recorded on December 31, 2018 using GAAP? A. $36,624 B. $41,376 C. $32,400 D. Unable to determine

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