On January 1, 2020, Wassel Co. sold 12% bonds with a face value of $1,000,000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,077,250 to yield 10%. Using the effective-interest method of amortization, interest expense for 2020 is a. $100,000. b. $107,419. $107,700. d. $120,000. 7,700,000
