Question: Cedar City issues $1,000,000, 6% revenue bonds at par on April 1 to build a new water line for the water enterprise fund. Interest is

Cedar City issues $1,000,000, 6% revenue bonds at par on April 1 to build a new water line for the water enterprise fund. Interest is payable every six months. What amount of interest expense should be reported for the year ended December 31?

a. $0

b. $30,000

c. $45,000

d. $60,000

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