On January 1, Dias Corporation issued $1,000,000, 14%, 5 year bonds with interest payable on July 1 and January 1. The bonds sold for $1,098,540.The market rate of interest for these bonds was 12%. On the first interest date, using the effective interest method, the debit entry to Bond Interest Expense is for:
a. $60,000.
b. $76,898.
c. $65,912.
d. $131,825.
On January 1, Dias Corporation issued $1,000,000, 14%, 5 year bonds with interest payable on July 1 and January 1. The bonds sold for $1,098,540.The market rate of interest for these bonds was 12%. On the first interest date, using the effective interest method, the debit entry to Bond Interest Expense is for:
a. $60,000.
b. $76,898.
c. $65,912.
d. $131,825.