At the beginning of 2020, Churchill Corporation issued 10% bonds with a face value of...
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Accounting
At the beginning of 2020, Churchill Corporation issued 10% bonds with a face value of $4,000,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The market interest rate is 12%. Churchill uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer to the nearest dollar.)
Select one:
a. $458,880
b. $443,334
c. $446,012
d. $444,666
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