A corporation issues $300,000, 10%, 5-year bonds on January 1, 2008 for $287,400. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight- line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1, 2008 is A) $31,260. B) $15,000. C) $16,260. D) $13,740