Merchant Company issued 10-year bonds on January 1 . The 6% bonds have a face value of 727,000 and pay interest every January 1 and July 1. The bonds were sold for $604,217 based on the market interest rate of 7%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dolla) of Oa. $21,148 Ob. $21,810 Oc. $25,445 Od. $18,127 On January 1, Elias Corporation issued 12% bonds with a face value of $74,000. The bonds are sold for $71,780. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is . $740 Ob. $9,102 Oc. $2,220 Od. $8,880 On January 1 of the current year, Barton Corporation issued 12% bonds with a face value of $113,000. The bonds are sold for $107,350. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is , $6,780 Ob. $565 Oc. $15,255 Od. $14,690