On January 1,Year 1,Kaiser Permanente Issued $2,000,000 of 8% Bonds

On January 1,Year 1,Kaiser Permanente issued $2,000,000 of 8% bonds at par.These bonds are due in 10 years,with interest payable semiannually on June 30 and December 31.What is the amount of the interest expense in Year 1,assuming the use of the effective interest amortization method? Refer to the PV table on pages 717 to 720 of the text.

A) $16,000
B) $160,000
C) $1,600,000
D) $2,000,000