B Company issued $900,000 of 6% bonds for $938,250 on January 1 to yield 5%. Interest is paid semiannually on July 1 and January 1. The premium is amortized using the effective interest method. Interest expense for the first 6 months is

$900,000 x .05 x 6/12

$938,250 x .05 x 6/12

$900,000 x .06 x 6/12

$938,250 x .06 x 6/12