On January 2, 2019, Kangaroo Convenience Stores issued 10-year, $5,000,000, zero-coupon bonds at 75. What is the amount of interest expense recorded in 2019 using the straight line amortization method?

A. $5,000,000
B. $3,750,000
C. $1,250,000
D. $125,000


Answer: D

Business

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