Designer Company issued 10-year bonds on January 1. The 5% bonds have a face value of $724,000 and pay interest every January 1 and July 1. The bonds were sold for $601,724 based on the market interest rate of 6%. Designer uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of a. $18,052 Ob. $15,043 O c. $21,720 Od. $18,100

Designer Company issued 10-year bonds on January 1 . The $% bonds have a face value of $724,000 and pay interest every January 1 and July 1 . The bands were sold for $601,724 based on the market interest rate of 6%. Designer uses the effective interest rate method to amortite bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of a. $15,052 b. 515,043 c. 521,720 4. 518,100