On January 1, Xiang Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on January1.

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.