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Designer Company issued $10-$year bonds on January $1.$ The $7\%$ bonds have a face value of $$761,000$ and pay interest every January $1$ and July $1.$ The bonds were sold for $$632,475$ based on the market interest rate of $8\%.$ Designer uses the effective interest rate method to amortize bond discounts and premiums. On July $1$ of the first year, Designer should record interest expense $($round to the nearest dollar$)$ of

a$.$ $$30,440$

b$.$ $$25,299$

c$.$ $$22,137$

d$.$ $$26,635$