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On January 1, 2021, Solo Inc. issued 2,800 of its 7%, $1,000 bonds at 97. Interest is payable semiannually on January 1 and July 1.
On January 1, 2021, Solo Inc. issued 2,800 of its 7%, $1,000 bonds at 97. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $50,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for 2021 is:
A. 209,400
B. 196,000
C. 204,400
D. 217,800
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