Hermosa Vista Company issued $160,000 5-year, 6.50% bonds and received $163,370 in cash. The market rate of interest when the bonds were issued was 6.00%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization?

Multiple Choice

$10,400.00

$9,600.00

$10,619.05

$9,802.20