Terrance Company issued $500,000 of 8% bonds at 102 on January 1, 20XX when the market rate was 7%. Assuming effective-interest method amortization and annual interest payments, how much bond interest expense is recorded for the first interest payment on December 31? A) $35,000 OB) $40,800 C) $40,000 D) $35,700 Question 29 (2 points) Saved For all leases greater than one year, the lessee records a long-term asset for the future value of the lease payments. A) True B) False