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On January 1, Year 1, Victor Company issued bonds with a $450,000 face value, a stated...

On January 1, Year 1, Victor Company issued bonds with a $450,000 face value, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds sold at 95. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.

What is the amount of interest expense appearing on the income statement for the year ending December 31, Year 3?

Group of answer choices

$31,500

$22,500

$25,650

$27,000

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