A Corporation Issues $300,000, 8%, 5-Year Bonds on January 1

Multiple Choice

A corporation issues $300,000, 8%, 5-year bonds on January 1, 2017, for $312,600. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized in December 31, 2017's adjusting entry is

A) $21,480.
B) $24,000.
C) $26,520.
D) $2,520.