Red Corporation issued $8 million of 20 -year, 8% bonds on July 1 , year 1 , at 98 . Interest is paid on June 30 and December 31 of each year, and all of the bonds mature on June 30 , year 20 . How much interest expense will Red record on December 31, year 1 ? $324,000$316,000$320,000$160,000