Question: Levi Company issued $ 2 0 0 , 0 0 0 of 1 2 % bonds on January 1 of the current year at face

Levi Company issued $200,000 of 12% bonds on January 1 of
Levi Company issued $200,000 of 12% bonds on January 1 of the current year at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1 and mature in 5 years on January 1. The total interest expense related to these bonds for the current year ending on December 31 is
$24,000
$18,000
$6,000
$2,000
the current year at face value. The bonds pay interest semiannually on

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