On January 1, 2014, $1,000,000, 5-Year, 10% Bonds, Were Issued

Multiple Choice

On January 1, 2014, $1,000,000, 5-year, 10% bonds, were issued for $980,000. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is

A) $8,000.
B) $4,000.
C) $2,000
D) $5,000