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On January 1, 2019, XYZ Co

Accounting

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On January 1, 2019, XYZ Co. issued 2-year bonds with a face value of $10,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield (Market Int.) 9%, at a selling price of $10,179.

            The interest expense recognized for the year 2019 is

a.

$734.

b.

$914.

c.

$826.

d.

$None.