Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds:DateCash PaidInterest ExpenseIncrease in Carrying ValueCarrying Value01/01/2021         $8,640,967 06/30/2021$300,000 $345,639 $45,639  8,686,606 12/31/2021 300,000  347,464  47,464  8,734,070 06/30/2022 300,000  349,363  49,363  8,783,433 12/31/2022 300,000  351,337  51,337  8,834,770?What is the interest expense on the bonds in 2021?

A. $347,464.
B. $600,000.
C. $693,103.
D. $345,639.


Answer: C

Business

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