A corporation issues $87,000, 8%, 5-year bonds on January 1, 2011, for $90,915. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond premium, determine the amount of bond interest expense to be recognized on July 1, 2011.

Select the correct answer.

$3,480

$6,960

$3,089

$3,872