Return to que On January 1 a company issued 2 10year bonds w

Return to que On January 1, a company issued 2%, 10-year bonds with a face amount of $70 million for $58.553901 to yield 4% Interest is paid semiannually. What was the straight-line interest expense on the December 31 annual income statement? (Enter your answer in whole dollars. Round your intermediate calculetions to the nearest dollar amount)

Solution

Annual discount amortization = (70000000-58553901)/10= 1144610 Straight line interest expense = (70000000*2%)+1144610= 2544610