1. At the beginning of 2014, the Alston Corporation issued 10% bonds with a face value of $400,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $370,560 to yield 12%. Alston uses a calendar-year reporting period. Using the preferable method of amortization, what amount of interest expense should be reported for 2014? (Round your answer to the nearest dollar.)
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a.
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$44,333
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b.
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$44,467
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c.
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$44,601
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d.
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$45,888
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