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On January 1, 2014, Cunningham Corporation issued $202,000 in bonds that mature in 7 years....

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On January 1, 2014, Cunningham Corporation issued $202,000 in bonds that mature in 7 years. The bonds have a stated interest rate of 5 percent and pay interest on December 31. When the bonds were sold, the market rate of interest was 9 percent. The company uses the effective-interest method. By December 31, 2014, the market rate of interest had increased to 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 5.10.00 points value: 2. What amount of interest expense is recorded on December 31, 2014? nterest expense

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