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

a. debit to Interest Expense \(\$ 57,600\).

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

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

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