5. Yale Corporation issued to Zap Corporation $60,000, 9% (cash interest payable annually December 31) 10-year bonds dated and issued on January 1, 2020. Assume that the company uses the effective interest method for discount or premium amortization. If the bonds were sold at 103 to yield 8.54%. The journal entry for December 31, 2020 Interest payment contains

Group of answer choices

a) Interest Expense of $5,400 and Cash payment of $5,400

b) Interest Expense of $5,277 and Premium amortization of $123

c) Cash Payment of $5,400 and Discount amortization of $123

d) None of the above