On January 1, 2017, Streuly Sales issued $34,000 in bonds for $18,700. These are sixyear bonds with a stated rate of 9% and pay semiannual interest. Streuly Sales uses the straightline method to amortize the Bond Discount. Immediately after the issue of the bonds, the ledger balances appeared as follows:

Bonds Payable 34,000 Discount on Bonds Payable 15,300

After the second interest payment on December 31, 2017, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A. debit of $14,025 B. debit of $16,575 C. credit of $15,300 D. debit of $12,750