[The following information applies to the questions displayed below.]On January 1, Year 1, Weller Company issued bonds with a $400,000 face value, a stated rate of interest of 10%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8%. Interest is paid annually on December 31.Assuming Weller issued the bond for $431,940, what is the amount of interest expense that will be recognized during Year 3?
A. $34,120
B. $33,649
C. $46,350
D. $20,000
Answer: B
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