Eucalyptus Inc. reports its financial results in accordance with ASPE and employs the straight line method of amortization for bond premiums and discounts. On January $1,$ Year $3$ Eucalyptus issued $$10,000,000$ of $5$ year, $6\%$ bonds with interest payable semi$-$annually on January $1$ and July $1$ each year.

The net proceeds realized after paying the $$50,000$ legal fee on issuance were $10,150,000.$

What amount will be booked to the bond payable account when the first interest payment is made on July $1$ Year $3?$

Answer rating: 100% (QA)

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