Cubs Corporation Issues $500,000,10%,5-Year Bonds on January 1,2014 for $479,000.interest

Question 115
Multiple Choice

Cubs Corporation issues $500,000,10%,5-year bonds on January 1,2014 for $479,000.Interest is paid annually on January 1.If Cubs Corporation uses the straight-line method of amortization of bond discount,the amount of interest expense recorded at December 31,2014 would be: A)$21,000. B)$45,800. C)$50,000. D)$54,200.