A company issued 10-year,6% bonds with a par value of $1,000,000.The company received $1,120,000 upon issuance.Using the straight-line method,the amount of interest expense for the first semi-annual interest period is:

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The correct answer is A.The amount of interest expense for the first semi-annual interest period is $24,000. This is calculated by multiplying the par value of the bonds by the annual interest rate and dividing by 2 (since the interest is paid semi-annually).

A Company Issued 10-Year,6% Bonds with a Par Value of $1,000,000.The