Applegate Corporation sells $150,000, 5%, 10-year bonds for 96 on January 1. Interest is paid on January 1 and July 1. Straight-line amortization is used. The amount of interest expense recorded on July 1, six months after issuance is: $4,250.00 $4,050.00 $4,500.00 $3,750.00 $8,500.00