7. BetaMax Forever Corporation issues $40,000,5%, 4-year bonds on January 1 at a discount for $38,200. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1 (the first interest payment) is $ 225 $1,225 $1,000 $1,800