Question: Hocker Company issues $ 2 0 0 , 0 0 0 of ten - year, 8 % bonds to yield 1 0 % on January

Hocker Company issues $200,000 of ten-year, 8% bonds to yield 10% on January 1,20X1. The bonds pay interest annually on December 31. The bonds were sold at a discount of $24,578.
The bond interest expense for 20X1 is:
Multiple Choice
$16,000.
$17,542.
$20,000.
$21,542.

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