HW question 1

On 1-1-2020, Dixon Corporation issued $400,000 (face value) of 6% bonds payable (i.e. the stated rate is 6%) for $367,555. Each bond has a face value of $1,000. The bonds are dated 1-1-2020 and mature 12-31-2024. Interest is paid semiannually on 6-30 and 12-31. The market rate of interest on similar bonds was 8% at the time of issue (i.e., 1-1-2020). Related to the bonds, how much interest expense will Dixon Corporation report on its income statement for the year 2020? O 33,756 16,667 O 14,704 O 16,912 0 34,068 24,000 29,512 O 27.724 O 13,824