Company sells

$350,000

of

9%,

15-year

bonds for

88.9091

on April 1,

2018.

The market rate of interest on that day is

10.5%.

Interest is paid each year on April 1. The issue price of the bond is

$311,182.

New England

Company uses the straight-line amortization method. The amount of interest expense for each year will be

A.

$31,500.

B.

$23,213.

C.

$39,338.

D.

$34,088.

E.

none of these.