Acme Corporation issued $100,000 face value, 9% (contractual rate), 10-year bonds. Bond interest is paid semiannually. The market rate of interest on the issue date was 8%, and as a result the Acme Corporation received $106,796 in cash for the bonds.

On the first semiannual interest payment date, the amount of premium that Acme Corporation would amortize by the effective-interest method is:

a. $228

b. $272

c. $306

d. $500

e. Some other amount