Jacobs Company issued bonds with a $182,000 face value on January 1, Year 1. The bonds were issued at 105 and carried a 5-year term to maturity. They had a 8% stated rate of interest that was payable in cash on December 31st of each year, Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation? Multiple Choice O increase liabilities by $1820, decrease assets by $12.740, and decrease equity by $14.560 Decrease equity by $12.740. decrease abities by $1820, and decrease assets by $14.560 Oo oo O Decrease both assets and stockholders' equity by $12740 Decrease both assets and stockholders' equity by $14.560