Presented below is the partial bond discount amortization schedule for Gomez Corp. Gomez uses the effective$-$interest method of amortization.

Interest

Periods

Issue date

$1$

$2$

Interest to Be Paid

Interest Expense to Be Recorded

Discount

Amortization

$$45,000$

$45,000$

$$48,070$

$48,223$

Unamortized

Discount

$$38,609$

$35,539$

$32,316$

Bond

Carrying

Value

$$961,391$

$964,461$

$967,684$

Explain why interest expense is greater than interest paid.

Ix

$$

$$3,070$

$3,223$