On January 1, Thompson Corporation Issued $4,000,000, 14%, 5-Year Bonds

Multiple Choice

On January 1, Thompson Corporation issued $4,000,000, 14%, 5-year bonds with interest payable on December 31.The bonds sold for $4,288,384.The market rate of interest for these bonds was 12%.On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for

A) $480,000.
B) $502,324.
C) $514,606.
D) $560,000.