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Designer Company issued 10 -year bonds on January 1. The 6% bonds have a face value of $746,000 and pay interest every January 1 and July 1. The bonds were sold for $620,008 based on the market interest rate of 7%. Designer uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of a. $18,600 b. $21,700 c. $22,380 d. $26,110 Levi Company issued $80,000 of 8% bonds on January 1 of the current year at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1 and mature in 5 years on January 1. The total interest expense related to these bonds for the current year ending on December 31 is a. $3,200 b. $533 c. $4,800 d. $6,400