The Designer Company issued 10-year bonds on January 1. The 7% bonds have a face value of $722,000 and pay interest every January 1 and July 1. The bonds were sold for $600,061 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of a. $25,270 b. $24,002 c. $28,880 d. $21,002