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A corporation issued bonds on January 1, 2018 with the following terms: Face Value: $500,000 Coupon Rate of Interest 8%, Term: 10 years Interest: Semi-annual

A corporation issued bonds on January 1, 2018 with the following terms: Face Value: $500,000 Coupon Rate of Interest 8%, Term: 10 years Interest: Semi-annual payments on June 30 and December 31 Market Rate of Interest 10% What is the amount of interest expense to be reported on the 2019 income statement? A. $22,080 B. $17,705 C. $40,000 D. $35,502 E. $44,264

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