Jones Company issued bonds with a $250,000 face value on January 1, Year I. The five-year term bonds were issued at 97 and had a 7.00% stated rate of interest that is payable in cash on December 31st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information: The amount of interest expense shown on Jones's December 31, Year 1 income statement would be: Multiple Choice $19,000 $16,000. $20,500 $17,500