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Jones Company issued bonds with a $120,000 face value on January 1 Year 1. The five-year term bonds were issued at 99 and had a

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Jones Company issued bonds with a $120,000 face value on January 1 Year 1. The five-year term bonds were issued at 99 and had a 850% stated rate of interest that is payable in cash on December 31st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information The amount of interest expense shown on Jones's December 31, Year 1 income statement would be

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