A company issued 5-year, 7% bonds with a par value of $600,000. The market rate when the bonds were issued was 6.5%. The company received $606,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: Multiple Choice $42,000 $41,400 $21,000 $20,400 $21,600