On January 1, 2014, the Horton Corporation issued 10% bonds with a face value of...
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Accounting
On January 1, 2014, the Horton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $192,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2018. Horton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2014, is
a.$10,800
b.$18,400
c.$21,600
d.$28,000
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