A Corporation Issues $300,000, 10%, 5-Year Bonds on January 1

Multiple Choice

A corporation issues $300,000, 10%, 5-year bonds on January 1, 2017, for $287,400. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2017's adjusting entry is

A) $32,520.
B) $30,000.
C) $27,480.
D) $2,520.