Neuberg Corporation issues bonds with a face amount of $12 million and a stated interest rate of 5%. The bonds sell at face amount. In addition, the company incurs bond issue costs of $320,000. The journal entry to record the issuance of the bonds includes a debit to:

• bond premium for 320,000.

• bonds payable for $320,000.

• bond discount for $12,000,000.

• bond discount for $320,000.