Kalahari Limited on January 2,2013,this Company Issued 1,000,000,10-Year Bonds for $1,150,000.The

Kalahari Limited On January 2,2013,this company issued 1,000,000,10-year bonds for $1,150,000.The bonds pay interest on June 30 and December 31.The stated rate is 10% and the market rate is 8%.The company plans to use the effective interest method of amortizing bond discounts and premiums.
-Refer to Kalahari Limited.The interest expense on the bonds at June 30,2013 is

A) $50,000
B) $46,000
C) $40,000
D) $42,400