On january 1, 2019, commercial equipment sales issued $28,000 in bonds for $15,700. these aresix-year bonds with a stated interest rate of 10%, and pay semiannual interest on june 30 anddecember 31. commercial equipment sales uses the straight-line method to amortize the bonddiscount. what amount is debited to interest expense on june 30, 2019? a) $2425 b) $1025 c) $25,067 d) $1400

A) $2425

Explanation:

The computation of the interest expense for the June month is shown below:

= (Issued amount × rate × number of months) ÷ (total number of months in a year) + (issued amount - sale value) ÷ (2 × number of months)

= ($28,000 × 10%) × (6 months ÷ 12 months) + ($28,000 - $15,700) ÷ (2 × 6 months)

= ($1,400) - ($12,300 ÷ 2 × 6 months)

= $1,400 + 1,025

= $2,425

The 6 months is calculated from January 1, 2019 to June 30

answer; by looking at total product,marginal product,and changes in both after changes in inputs