As output increases, A) the difference between average total cost and average variable cost decreases. B) the difference between average total cost and average variable cost becomes greater and greater. C) marginal cost increases continuously. D) average variable cost becomes smaller and smaller.

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)