McCabe Corporation issued $560,000 of 7% 10-year bonds. The bonds are dated and sold on January 1, 20X1. Interest payment dates are January 1 and July 1. The bonds are issued for $521,724 to yield the market interest rate of 8%. Using the effective-interest method, what is the amount of interest expense that McCabe Corporation will record on July 1, 20X1, the first semiannual interest payment date? (All amounts rounded to the nearest dollar.) A. $39,200 # B. $20,869 C. $22,400 D. $19,600