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On January 1, 2020, Exsel Corporation issued 5-year bonds with a face value of $4,000,000 and received a cash inflow of $3,835,992. The bonds' stated

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On January 1, 2020, Exsel Corporation issued 5-year bonds with a face value of $4,000,000 and received a cash inflow of $3,835,992. The bonds' stated interest rate is 6%, with interest payable annually on December 31. On the issue date, the market rate of interest for similar risk investments was 7%. Exsel's journal entry on January 1, 2020 to record the bond issue will include a: Credit to Discount on Bonds Payable of $164,008 Debit to Discount on Bonds Payable of $164,008 Debit to Premium on Bonds Payable of $164,008 Credit to Premium on Bonds Payable of $164,008 How much "Interest Expense" will Exsel show on its 2021 Income Statement? $104,973 $268,519 $270,516 $240,000

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