Carmen Company issued 10-year bonds on January 1. The 10% bonds have a face value of $300,000 and pay interest every January 1 and July 1. The bonds were sold for $363,957 based on the market interest rate of 7%. Carmen Company uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the same year, Carmen should record interest expense (rounded to the nearest dollar) of a. $25,476. b. $15,000. c. $30,000. d. $12,738