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

(a) debit to Interest Expense $30,000.

(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.