On January 1, a corporation issued $1,000,000, 14%, 5-year bonds. The bonds sold for $1,072,096 This price resulted in an effective interest rate of 12% on the bonds. Interest is payable annually on January 1. Use the effective-interest method to determine the amount of interest expense for the first year $120,000 O $140,000 $128,652 $125,581 O $167.425