Table 15-2
Douglas Corporation Is Issuing $400,000 of 7 B)

Table 15-2
Douglas Corporation is issuing $400,000 of 7.5%, five-year bonds. The bonds are dated and sold on March 1, 2017. Interest payment dates are March 1 and September 1. The market interest rate is 8% and the bonds are sold for $392,400. The company uses the effective-interest method of amortization.
-Refer to Table 15-2. What is the amount of interest expense and discount amortization that Douglas Corporation will record on September 1,2017,the first semiannual interest payment date?

A) $$\begin{array} { | l | l | l | l | } \hline\text { Interest expense } & \text { Discount amortization } & \text { Interest expense } & \text { Discount Amortization } \\\hline\$14,715 & \$ 981 & & \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | l | } \hline \text { Interest expense } & \text { Discount amortization } & \text { Interest expense } & \text { Discount Amortization } \\\hline 16,000 & \$ 1,000 & & \\\hline\end{array}$$
C) $$\begin{array} { | l | c | l | l | } \hline \text { Interest expense } & \text { Discount amortization } & \text { Interest expense } & \text { Discount Amortization } \\\hline 15,000 & - - & & \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | l | } \hline \text { Interest expense } & \text { Discount amortization } & \text { Interest expense } & \text { Discount Amortization } \\\hline 15,696 & \$ 696 & & \\\hline\end{array}$$