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McLennan Corporation issued $150,000 of 6.5% 10-year bonds. The bonds are dated and sold on January 1, 2015. Interest payment dates are January 1 and
McLennan Corporation issued $150,000 of 6.5% 10-year bonds. The bonds are dated and sold on January 1, 2015. Interest payment dates are January 1 and July 1. The bonds are issued for $144,670 to yield the market interest rate of 7%. McLennan Corporation uses the effective-interest method. The interest expense that McLennan Corporation will record on July 1, 2015 is $5,063 and the interest payment is $4,875. What is the amount of discount amortization that McLennan Corporation will record on July 1, 2015, the first semiannual interest payment date? O A. $5,063 OB. $188 OC. $-0- OD. $4,875
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