Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $714,000 and pay interest every January 1 and July 1. The bonds were sold for $593,413 based on the market interest rate of 6%. 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 dollar) of a $14,835 b. $21,420 c. $17,802 d. $17,850