Hooker Company issues $200,000 of ten-year, 8% bonds to yield 10% on January 1, 2018. The bonds pay interest annually on December 31. The bonds were sold at a discount of $24,578.

The amount of cash interest paid in 2018 on the bonds is:

Multiple Choice

a) $14,458.

b) $16,000.

C) $17,542.

d) $20,000.