On January 1, Thompson Corporation Issued $3,000,000, 14%, 5-Year Bonds

Multiple Choice

On January 1, Thompson Corporation issued $3,000,000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $3,216,288. 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) $360,000.
B) $376,743.
C) $385,955.
D) $420,000.