Marine City Company sells bags of coffee. Each bag includes one coupon; five coupons (plus \$2.00) are redeemable for a personalized coffee mug. In 2024, Marine City purchase 15,000 mugs at $4.20 each and sold 60,000 bags of coffee that year at $8.00 per bag. Marine City estimated that 40% of the coupons would be redeemed. Actual coupons redeemed were 8,000 in 2024 and 13,000 in 2025. The estimated liability for outstanding premiums on the 12/31/24 balance sheet is: Select one: a. $7,040 b. $3,200 C. $13,440 d. $9,152 e. $10,560 On January 1,2024 , Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1,2034 . The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31. The 2025 Interest Expense is approximately: Select one: a. $358 b. $305 c. $302 d. $330 e. $355