C is corrent. The amount of the interest expense would be determined by using the time period from the date of the issuance of the bonds to the end of the year. The calculation of interest expense is not dependent on interest payment dates but rather on the length of time the bonds are outstanding. C is corrent because interest expense would be incurred for the period from June 1, year 1 , to December 31, year 1 , or seven months.
A is incorrect. The amount of the interest expense would be determined by using the time period from the date of the issuance of the bonds to the end of the year. The calculation of interest expense is not dependent on interest payment dates but rather on the length of time the bonds are outstanding. A is incorrect because interest expense would be incurred for the period from June 1, year 1, to December 31, year 1 , or seven months.
B is incorrect. The amount of the interest expense would be determined by using the time period from the date of the issuance of the bonds to the end of the year. The calculation of interest expense is not dependent on interest payment dates but rather on the length of time the bonds are outstanding. B is incorrect because interest expense would be incurred for the period from June 1, year 1 , to December 31, year 1 , or seven months.
D is incorrect. The amount of the interest expense would be determined by using the time period from the date of the issuance of the bonds to the end of the year. The calculation of interest expense is not dependent on interest payment dates but rather on the length of time the bonds are outstanding. D is incorrect because interest expense would be incurred for the period from June 1, year 1 , to December 31, year 1 , or seven months.
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