Answer:
$11,880
Explanation:
Calculation to determine The bond interest expense for the year ended December 31 is
First step
Semiannual interest=($99,000 * 0.11 * 6/12)
Semiannual interest= $5445
Second step
Semi-annual discount amortization
Semi-annual discount amortization=($99,000 - $94,050)/5*/12
Semi-annual discount amortization=($4950 / 5)*6/12
Semi-annual discount amortization= 495
Third step
Semiannual interest expense=(5445 + 495)
Semiannual interest expense = $5940
Now let determine the bond interest expense
Bond interest expense =($5940 * 2)
Bond interest expense = $11880
Therefore The bond interest expense for the year ended December 31 is $11,880
