Question Content Area Merchant Company issued 10-year bonds on January 1. The 6% bonds have a face value of $716,000 and pay interest every January 1 and July 1. The bonds were sold for $595,075 based on the market interest rate of 7%. Merchant uses the effective interest rate method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (rounded to the nearest dollar) of

a.$17,852 b.$21,480 c.$25,060 d.$20,828