On March 2, 2013, 20-year, 6 percent, general obligation serial bonds were issued at the face amount of $3,000,000. Interest of 6 percent per annum is due semiannually on March 1 and September 1. The first payment of $150,000 for redemption of principal is due on March 1, 2014. Fiscal year-end occurs on December 31.
1. What is the interest expense for the fiscal year ending December 31, 2010?
a. $90,000.
b. $135,000.
c. $150,000.
d. None of the above.
2. What is the interest expenditure for the fiscal year ending December 31, 2010?