218. Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $312,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (i)? A)$31,200 B)$32,400 C)$30,000 D)$6,000

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The annual straight-line amortization is calculated as ($312,000 - $300,000) ÷ 5 = $2,400. Therefore, the interest expense for the first year will be $30,000 ($300,000 x 10%), and the amount of bond discount amortized will be $2,400. So, the total bond interest paid in the first year will be $32,400, which should be shown in cell (i).