Designer Company issued 10-year bonds on January 1. The 8% bonds have a face value of $108,000 and pay interest every January 1 and July 1. The bonds were sold for $130,260 based on the market interest rate of 6%. 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 a. $3,240 Ob. $5,210 Oc. $4,320 Od. $3,908