On january 1, 2019, commercial equipment sales issued 22,000 in bonds for 21700. these are six−year bonds with a stated interest rate of 14% and pay semiannual interest on june 30 and december 31. commercial equipment sales uses the straight− line method to amortize the bond discount. what amount is debited to interest expense on june 30, 2019?

$1,565

Explanation:

Interest expense = Interest payment + Amortization expense

also,

Interest payment = 22,000 × 14% × [ 6 ÷ 12 ]           [∵ 6 ÷ 12 ; since payment are semiannual ]

Thus,

Interest payment = $1,540

and,

Amortization expense = [22,000 - 21,700 ] ÷ [6 × 2]      

= $25

Therefore,

Interest expense = $1,540 + $25

= $1,565

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !