On January 1 Pierce 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, \(\$ 2,000\).