On January 1, 2016, Lewis Corporation issued $100,000 face value bonds for $92,977. The bonds had a 10-year term and a 6% stated rate of annual interest. At the time the bonds were issued, the market rate of interest for bonds of comparable risk was 7%. Using the effective interest rate method, what is the amount of the discount amortization for 2016?

A) $ 508.39

B) $ 421.38

C) $1,000.00

D) The discount is not amortized when using the effective interest rate method.