On January 1, 20X1 Packer Corporation issued 3-year, $600,000 face value, 8% coupon bonds, which pay interest semi-annually each June 30 and December 31. The bonds mature on December 31, 20X3. On January 1, 20X1 the market rate [yield rate] of interest on similar bonds in the market was 6% and thus the bonds were issued for $632,500 as shown in the partially completed bond amortization given below. Packer Corporation uses the effective interest method in calculating interest expense and in the amortization of any discount or premium. Interest Expense Premium Carrying Value Amortized $632,500 (b) Date Cash 1/1/X1 6/30/X1 12/31/X1 (a) 18,975 (c) 6/30/X2 12/31/X2 6/30/X3 12/31/X3 (d) Calculate the amount of cash which will be recorded on the first interest payment date of 6/30/X1. (.e. (a) in the table above would be replaced by what amount). Multiple Choice $18,975