228. Trendy Company issued $600,000 of 8%, 5-year bonds at 105. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?

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The bond interest expense is calculated as the annual interest payment minus the amortization of the bond premium. The annual interest payment is $600,000 * 8% = $48,000. The bond premium is $600,000 * 5% = $30,000, which is amortized over 5 years, resulting in $6,000 per year. Therefore, the bond interest expense is $48,000 - $6,000 = $42,000.