Franklin Corporation issues $85,000, 10%, five-year bonds on January 1 for $88,800. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is Oa. $3,780 Ob. $6,800 Oc. $3,870 Od. $3,400