On 1 April, Year 1, Cricket Corporation Issues $60 Million

On 1 April, year 1, Cricket Corporation issues $60 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each 1 April and 1 October.


-Interest expense on this bond issue reported in Cricket's year 1, income statement is:

A) $2,400,000
B) $4,800,000
C) $5,400,000
D) $7,200,000