Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the

a) effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020.

b) straight line method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020.