Designer Company issued 10-year bonds on January 1. The 9% bonds have a face value of $103,000 and pay interest every January 1 and July 1. The bonds were sold for $124,229 based on the market interest rate of 7%. 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. $21,148 

b. $21,810 

c. $25,445 

d. $18,127