On January 1, 2018, Blm Co. issued $200,000, 4%, 10-year bonds at 92.25, when the market rate of interest was 5%. Interest is payable semiannually, on 1/1 and 7/1. What does Elm Company report on their 2018 income statement, as interest expense related to these bonds, and what is the cash received by the bondholders for 2020?

a. Int Exp= $4775, Cash Rec= $4000

b. Int Exp= $8000, Cash Rec= $4000

c. Int Exp= $9550, Cash Rec= $8000

d. Int Exp= $9550, Cash Rec= $4000

e. Int Exp= $8000, Cash Rec= $8000