A corporation issues $ 417000 , 10 %, 5 -year bonds on January 1, 2020, for $

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Question:

A corporation issues $417000, 10%, 5-year bonds on January 1, 2020, for $399600. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2020’s adjusting entry is

$45180.

$38220.

$41700.

$3480.