Mcwood Corporation issued $100,000 of 10%, 5-year bonds payable on January 1, 20X0, for $85,920. The market interest rate when the bonds were issued was 14%. Interest is paid semi-annually on January 1 and July 1. The first interest payment is July 1, 20X0. Using the effective-interest amortization method, how much interest expense will Mcwood record on July 1, 20X0? A. $5,000 B. $6,014 C. $5,500 D. $7,000 E. $4,296