Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438