Jacobs Company issued bonds with a(n) $180,000 face value on January 1, Year 1. The bonds were issued at 105 and carried a 5 -year term to maturity. They had a 9% stated rate of interest that was payable in cash on December 3ist of each yeat. 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? Mutiple Cholce Decrease both assets and stockholders' equily by $14,400 Decrease equty by $14,400, decrease llabieies by $1,800, and docrease assets by $16,200 Decrease both assets and stockholders' equify by $16.200 Increase iabilities by $1,800, decrease assets by $14,400, and decrease equity by $16,200