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At the beginning of 2020, Waterway Industries issued 8% bonds with a face value of...

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Accounting

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At the beginning of 2020, Waterway Industries issued 8% bonds with a face value of $4200000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $3890880 to yield 10%. Waterway 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.) $387737 O $403283 O $389069 $390415

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