A government has $1,000,000 of 6%, 10-year general obligation bonds outstanding. The

bonds were issued on August 15, 20X6 to finance construction of a general capital asset.

Interest is payable semiannually on February 15 and August 15. What is the maximum

amount of interest expenditures that the government would be permitted to report on the

bonds for the year ended December 31, 20X6?

A. $22,500.

B. $30,000.

C. $60,000.

D. $0.