On January 1, 2016, Solo Inc issued 1,100 of its 7%, $1000 bonds at 98. Interest is

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On January 1, 2016, Solo Inc issued 1,100 of its 7%, $1000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2026. Solo paid $62,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for the year is: ,

A) $85,400

B) $87,600

C) $79,200

D) $77,000