Refer to Exhibit 14-2.The amount of bond interest expense reported on the year-end 2010 income statement would be

A) $17, 538
B) $18, 000
C) $23, 384
D) $24, 000

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its official worth.

Accrued Interest

Interest that has been incurred but not yet paid or received, often related to bonds or loans.

Bond Interest Expense

The cost incurred by an entity for borrowing funds through the issuance of bonds, represented as interest payments to bondholders.