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On January 1, 2022, Pipestone Corporation issued a seven-year, $40,000,10% bond. The interest is payable annually each December 31 . The issue price was $38,115

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On January 1, 2022, Pipestone Corporation issued a seven-year, $40,000,10% bond. The interest is payable annually each December 31 . The issue price was $38,115 based on an 11% effective interest rate. Pipestone uses the effectiveinterest amortization method. The interest expense on the income statement for the year ended December 31,2022 is closest to: Multiple Choice $4,631. $4,000. $4,193. $3,812

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