82. A company issues $25,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24,505,201. If the effective-interest method of amortization is used, what amount of interest expense will be recognized in 2024? a. $975,000 b. $1,950,000 c. $1,960,624 d. $1,960,415 Ans: C, LO: 1, Bloom: AP, Difficulty: Moderate, Min: 3, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA: Reporting & Control: Financial Recordkeeping, IFRS: None Solution: ($24,505,201 x .04) + ($24,510,387 x .04) = $1,960,624.