On January 1, 2017, $4,000,000, 5-Year, 10% Bonds, Were Issued

Multiple Choice

On January 1, 2017, $4,000,000, 5-year, 10% bonds, were issued for $4,240,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize premium on bonds payable, the monthly amortization amount is

A) $35,332.
B) $48,000.
C) $4,800.
D) $4,000.