On January 1 Pierce Corporation issues $500,000, 5-year, 12% bonds at 96 with inter- est payable on January 1. The entry on De- cember 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a:

(a) dcbit to Intcrcat Expensc, $57,000.

(b) debit to Interest Expense, $60,000.

(c) credit to Discount on Bonds Payable, $4,000.

(d) credit to Discount on Bonds Payable, $2,000.AppendixLO1