MC14-3. On July 1. Year 1, Planet Corporation sold Ken Company 10-year, 8% bonds with a face amount of $500.000 for $520,000. The market rate was 6%. The bonds pay interest semiannually on June 30 and December 31. For the 6 months ended December 31, Year 1, what amount should Planet report as bond interest expense and long-term liability in the balance sheet and income statement for Year 1? Balance Sheet Income Statement a $511,200 $31,200 b. $500,000 $20,000 c. $504,400 $ 4,400 d. $515,600 $15,600