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On January 1, 2014, the Horton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $192,000. The bonds pay

  1. On January 1, 2014, the Horton Corporation issued 10% bonds with a face value of $200,000.

    The bonds are sold for $192,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2018. Horton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2014, is

    1. 28,000

    2. 21,600

    3. 10,800

    4. 18,400

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