QUESTION 18 On April 1, year 1, UltraSpace Corporation issues $60 million of 12 % , 10- year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. The adjustment necessary at December 31, Year 1 (if any), related to this bond issue involves O recognition of interest expense of $3,600,000 recognition of interest expense of $1,800,000 O payment of cash of $1,800,000 There is no adjustment necessary