Douglas Company issued 5-year bonds on January 1. The 10% bonds have a face value of $35,000,000 and pay interest every January 1 and July 1. The bonds sold for $37,838,675 based on the market interest rate of 8%. Douglas Company uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the same year, Douglas Company should journalize interest expense (rounded to the nearest dollar) of a. $3,500,000. b. $1,513,547. c. $1,750,000. d. $3,027,094.

(rewndend to the nearest dodiar) a. $3,500,000 b. 51,513,547 c 31,750,000 d. 13,027,094 (rewndend to the nearest dodiar) a. $3,500,000 b. 51,513,547 c 31,750,000 d. 13,027,094