On January 1, 2013, Solo Inc. issued 1,600 of its 7%, $1,000 bonds at 99. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2023. Solo paid $67,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for the year is:
$120,300 $121,900 $112,000 $113,600