On January 1, 2023, 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 2023 is

Question 10Select one:

a.

$20,837.

b.

$20,000.

c.

$24,000.

d.

$27,501.