1) Daniel Corporation had net income for 2018 of $81,000. Daniel had 15,000 shares of common stock outstanding at the beginning of the year and 23,000 shares of common stock outstanding at the end of the year. There were 12,000 shares of preferred stock outstanding all year. During 2018, Daniel declared and paid preferred dividends of $20,000. On December 31, 2018, the market price of Daniels common stock is $45.00 per share and the market price of its preferred stock is $71.00 per share. What is Daniels price/earnings ratio at December 31, 2018? (Round any intermediate calculations and your final answer to the nearest cent.)

A. 14.02

B. 12.78

C. 16.65

D. 22.12

2) On January 1, 2019, Commercial Equipment Sales issued $38,000 in bonds for $18,700. These are six-year bonds with a stated interest rate of 10%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2019?

A. $39,233

B. $3,508

C. $1,900

D. $1,608