On July 1 the ZackMore Corporation issues $900,000 of 10-year, 7%, bonds dated July 1 at $838,843.57 when the market rate of interest is 8%. ZackMore Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31. The interest expense recognized for the first semiannual interest payment on December 31 is: a. $29,359.24 b. $31,500.00 C. $33,553.74 d. $36,000