Check my work On January 1, 2019, Tonika Company issued a seven-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,479 based on an 8% effective interest rate. Tonika uses the effective interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice $874. $758. Prev 2 of 5 . . Next >