Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest on January 1, 2016. The bonds carried a 5-year term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year.
The amount of interest expense appearing on the December 31, 2018 income statement would be:
A. $17,500.
B. $12,500.
C. $14,250
. D. $15,000.
