On January 1, a company issued $3,500,000 of 10%, 7-year bonds for $3,180,537. Interest payable annually on January 1. The effective interest rate on the bonds is 12%. Use the effective- interest method to determine the amount of interest expense for the first year. 0 $350,000 O $318,054 $381,664 O $420,000 O $484,526