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On January 1, 2020, Bonita Industries sold to Sandhill Co. $790000 of its 10% bonds for $699384 to yield 12%. Interest is payable semiannually on
On January 1, 2020, Bonita Industries sold to Sandhill Co. $790000 of its 10% bonds for $699384 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Bonita report as interest expense for the six months ended June 30, 2020?
| a. | $34969 |
| b. | $47400 |
| c. | $39500 |
| d. | $41963 |
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