On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000 . The bonds are sold for$46,000 . The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31,ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense forthe year ended December 31 of the first year is

a. $5,000
b. $5,200
c. $5,800
d. $5,400


d

Business

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