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On February 1, 2020, Company B issued a 10-year bond at par with a par value of $500,000 dated January 1, 2020. The bonds have

On February 1, 2020, Company B issued a 10-year bond at par with a par value of $500,000 dated January 1, 2020. The bonds have an interest rate of 4%, with interest payable annually on January 1. What is the net amount of interest expense recorded for this bond by December 31 (hint: interest is affected on both the issuance date and the adjustment at year-end)?

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