A ten-year bond issue of $400,000, interest rate of 9% paid semiannually, is sold for $440,000 when the market rate is 8%. The bonds were not sold between interest dates and the straight-line amortization method is used. The entry to record the first interest payment would include

a debit to Cash of $18,000.

a debit to Bond Interest Payable of $18,000.

a debit to Premium on Bonds Payable of $2,000.

a credit to Bond Interest Expense of $16,000.