NoleCo issues bonds on January 1, 20X5. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $800,000 and the coupon/stated rate is 10%. The market rate on the issue date is 8%. The bonds were issued for $908,723. Required: Complete the three parts below.

Part A: The interest expense that NoleCo should recognize on June 30, 20X5 is: $38,493 /$40,000/ $32,000 /$36,349 /$45,436

Part B: The interest expense that NoleCo should recognize on December 31, 20X5 is: $38,398 /$40,000 /$36,203/ $45,254 /$32,000

Part C: The carrying value of these bonds on December 31, 20X5 (after the interest payment on that date) is: $905,072 /$901,275 /$800,000/ $905,614 /$908,723