A corporation issues $96,000, 8%, 5-year bonds on January 1, 2011, for $100,320. 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.

$4,272

$3,408

$3,840

$7,680