Alan Smith Antiques issued its 7%, 20-year bonds payable at a price of $846,720 (face value is $900,000). The company uses the straight-line amortization method for the bond discount or premium....

Alan Smith Antiques issued its 7%, 20-year bonds payable at a price of $846,720 (face value is $900,000). The company uses the straight-line amortization method for the bond discount or premium. Interest expense for each year is

a. $65,664.

b. $60,336.