Chapter 12, Problem 4QC

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Straight-line amortization method: It is a method of bond amortization that spreads the amount of the bond discount equally over the interest period.

To identify: The correct answer by solving the interest expense for each year.