[The following information applies to the questions displayed below.]On January 1, Year 1, Victor Company issued bonds with a $250,000 face value, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds sold at 95. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.What is the amount of interest expense appearing on the income statement for the year ending December 31, Year 3?
A. $14,250
B. $17,500
C. $12,500
D. $15,000
Answer: B
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