1.method of amortization. Interest is paid each June 30 and December 31. The interest expense recognized for the first semiannual interest payment on December 31 is:
A)$9,000.
B)$75,000.
C)$84,000.
D)$180,000.

Question

Quizplus · Accepted Answer

The interest expense for the first semiannual payment is calculated by multiplying the principal amount by the annual interest rate and then dividing by two (for the semiannual period). If the principal and rate are not provided, the correct choice is based on typical calculations or given context.

1Method of Amortization