Answer:
b. $700,700
Explanation:
Correct word <em>"What is the interest expense on the bonds for the year ended December 31, 2022? Multiple Choice: a. $600,000 b. $700,700 c. $100,700"</em>
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Outstanding balance at the beginning = $8,640,967
Interest for the first half-year = $345,639. Effective half-yearly interest rate = $345,639 / $8,640,967 = 0.04 = 4%
Interest for the fourth period (Second half of the year 2022) = Balance outstanding during the half-year beginning * 4% = $8,783,433 * 4% = $351,337
Total Interest for 2022 = Interest for first half + Interest for second half
Total Interest for 2022 = $349,363 + $351,337
Total Interest for 2022 = $700,700
