a. $4,185 b. $3,255 c. $3,926 d. $5,048

Designer Company issued 10-year bonds on January 1. The bonds have a face value of $93,000 and pay interest every January 1 and July 1. The bonds were sold for $112,158 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 an interest expense (rounded to the nearest dollar) of O S4,18S Ss,2ss Ss,926 Ss,048