Alan Smith Antiques issued its 7%, 20-year bonds payable at a price of $ 846, 720 (face value is $ 900, 000). The company uses the straight-line amortization method for the bond discount or premium. Interest expense for each year is
A. $ 65, 664.
B. $ 60, 336.
C. $ 63, 000.
D. $ 59, 270.
Answer: A. $ 65, 664.
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