Can you please break down how to do the following problem:

On Oct 1, 2014, Menke Company purchased to hold to maturity 400, $1,000, 9% bonds for $416,000. An additional $12,000 was paid for accrued interest. Interest is paid semiannually on Dec 1 and Jun 1, and the bonds mature on Dec 1, 2018. Menke uses straight line amortization. Ignoring income taxes, the amount reported in Menke's 2014 income statement from this investment should be:

a.) 9960

b) 10920

c) 8040

d) 9000