On January 1 of Year 1 , Congo Express Airways issued $3,250,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,970,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $9,333 every six months. The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be: Multiple Choice $123,083. $246,166. $227,500. $260,000. $208,834