. On January 1, 2020, Neisha Ltd. sold five year, 6% bonds with a face value of $ 400,000. Interest will be paid semi-annually on June 30 and December 31. The bonds were sold for $ 417,505 to yield 5%. Using the effective-interest method of amortization of bond discount or premium, interest expense for 2020 is: (2mark)

Select one:

a. $27,501

b. $20,000

c. $20,837

d. $24,000