A company issued 6-year, 8% bonds with a par value of $650,000. The market rate when the bonds were issued was 7.5%. The company received $665,474 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

• $27,134.40.

• $24,710.50.

• $49,907.40.

• $52,000.00.

• $26,000.00.