Kulleri

On July 1 the Stanley Corporation issues $4,000,000 of 10-year, 7%, bonds dated July 1 at 89 when the market rate of interest is 8%. Stanley Corporation uses the straight-line method of amortization. Interest is paid each June 30 and December 31. The interest expense recognized for the first semiannual interest payment on December 31 is:A0 $160, 000 B)$138,000 C)$162,000 D)$320,000Can you tell me how to find the answer, what formula do i need to use, i really need to know, thanks.

botygy

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