On January 1, 2020, Baby Yoda Corp. issued $950,000 face value, 9%, 5 year bonds. The bond interest is paid on June 30 and December 31. The bonds sold for $1,029,008. When the bonds were sold, the effective rate of interest was 7%. Under the effective interest method, the interest expense incurred on June 30, 2020 would be closest to:
A.$46,305
B.$33,250
C.$36,015
D.$42,750
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