Question: Can you solve this general accounting problem with appropriate steps and explanations? A company issues bonds with a face value of $400,000 carrying a 10%

Can you solve this general accounting problem with appropriate steps and explanations?

A company issues bonds with a face value of $400,000 carrying a 10% annual interest rate, with interest payable semi-annually. What is the amount of interest expense the company should recognize on the first interest payment date, six months after issuance? a. $40,000 b. $10,000 c. $20,000 d. $5,000

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