Redding Corporation issued $400,000 of 10%, five-year bonds. The bonds are dated and sold on February 1, 2020. Interest payment dates are February 1 and August 1. The market interest rate is 8% and the bonds are sold for $432,442. The company uses the effective-interest method of amortization. What is the amount of interest expense and premium amortization that Redding Corporation will record on August 1, 2020, the first semiannual interest payment date? Round to the nearest cent. OA. Interest expense $20,000.00 Premium amortization $1,351.50 OB Premium amortization $4,000.00 Interest expense $16,000.00 Interest expense $17,297.68 Premium amortization $2,702.32 OD. Interest expense $20,000.00 Premium amortization $2,000.00