Question - On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a note like this on January 1, 2016 was 7%. What amount of interest expense should be included in Sinclair's 2017 income statement?
a. $499,100.00
b. $0.00
c. $534,037.00
d. $571,419.59