Table 15-3 Redding Corporation Issued $400,000 of 10%, Five-Year Bonds. the Bonds

Table 15-3
Redding Corporation issued $400,000 of 10%, five-year bonds. The bonds are dated and sold on February 1, 2017. Interest payment dates are February 1 and August 1. The market interest rate is 8% and the bonds are sold for $432,442. The company uses the effective-interest method of amortization.
-Refer to Table 15-3.What is the total interest expense 2017,assuming all year-end adjusting entries are made?

A) $25,946.52
B) $31,622.34
C) $26,179.56
D) $40,000