A Corporation Issues $200,000, 10%, 5-Year Bonds on January 1

Multiple Choice

A corporation issues $200,000, 10%, 5-year bonds on January 1, 2014, for $191,600. 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, 2014's adjusting entry is

A) $21,680.
B) $20,000.
C) $18,320.
D) $1,680.