Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable on January 1, 2022. The market interest rate when the bonds were issued was 8%. Interest is paid semiannually on January 1 and July 1. The first interest payment is July 1, 2022. Using the effective-interest amortization method, how much interest expense will Mcdonaugh record on July 1, 2022? Use Excel to calculate the issue price. (Round intermediary calculations to the nearest whole dollar.) A. $4,976 B. $7,961 C. $1,711 D. $10,000 E. $6,250