On April $1,2018,$ Millwood Inc. issued fifteen$-$year bonds. The bonds have a face value of $$600,000$ and a stated interest rate of $6\%,$ payable semiannually on October $1$ and April $1$ beginning on October $1,2018.$ The bonds were issued when the market rate was $5\%.$ Millwood uses the straight$-$line amortization method.

What will be the total interest cost over the entire life of the bonds and how much interest expense should be recognized in ${2018}_{?}?$ Round to the nearest whole dollar.

Select one:

a$.$ $$724,469$

$$12,075$

b$.$ $$477,209$

$$7,954$

c$.$ $$477,722$

$$31,814$

d$.$ $$435,396$

$$21,770$

e$.$ $$477,209$

$$23,861$

On April $1,2018,$ Millwood Inc. issued fifteen$-$year bonds. The bonds have a face value of $$600,000$ and a stated interest rate of $6\%,$ payable semiannually on October $1$ and April $1$ beginning on October $1,2018.$ The bonds were issued when the market rate was $5\%.$ Millwood uses the straight$-$line amortization method.

What will be the total interest cost over the entire life of the bonds and how much interest expense should be recognized in ${2018}_{?}?$ Round to the nearest whole dollar.

Select one:

a$.$ $$724,469$

$$12,075$

b$.$ $$477,209$

$$7,954$

c$.$ $$477,722$

$$31,814$

d$.$ $$435,396$

$$21,770$

e$.$ $$477,209$

$$23,861$