During 2016, Patty's Pizza reported net income of $3,712 million, interest expense of $182 million and income tax expense of $2,122 million. During 2015, Pattys reported net income of $3,068 million, interest expense of $178 million and income tax expense of $2,174 million. The times interest earned ratios for 2016 and 2015, respectively, are closest to:

33.05 and 30.45 times.

32.05 and 29.45 times.

30.45 and 33.05 times.

31.05 and 28.45 times.

On January 1, 2016, Tonika Company issued a four-year, $10,700, 7% bond. The interest is payable annually each December 31. The issue price was $10,018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2016 interest expense?

Interest expense	700
Bond discount	49
Cash		749

Interest expense	801
Bond discount		52
Cash		749

Interest expense	749
Cash		749

Interest expense	915
Bond discount		166
Cash		749