Which of the following is true concerning financial statement disclosure for debt instruments? a. The fair value of financial instruments must be disclosed either in the body of the financial statements or in disclosure notes b. Disclosures should include the aggregate amounts payable for each of the next five years for any long-term borrowing c. Both the issuer and the investor report interest as an operating activity on the statement of cash flows d. All of the above

Chism Corporation issued $10 million face amount of bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. The following is a partial bond amortization schedule for the bonds. Payment Cash Effective Decrease in Outstanding Interest Balance Balance 11,487,747 1 400,000 344,632 55,368 11,432,379 2 400,000 342,971 57,029 11,375,350 3 400,000 341,261 58,739 11,316,611 4 400,000 What is the interest expense on the bonds in 2019? a. $119,241 b. $342,961 c. $680,759 d. $800,000