On January 1,2010,a corporation issued a $400,000,12% bond.The interest is payable semi-annually on June 30 and December 31.The issue price was $413,153 based on a 10% market interest rate.Assuming the effective-interest method of amortization is used,what is the interest expense for the six-month period ending June 30,2010 (to the nearest dollar)?

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Interest expense ($20,658) = January 1, 2010 book value ($413,153) F1F1F1S1F1F1F10 Six-month market rate of interest (10% F1F1F1S1F1F1F10 6/12)

On January 1,2010,a Corporation Issued a $400,000,12% Bond