On January 1, 2019, Commercial Equipment Sales issued

$24,000

in bonds for

$17,700.

These are

sixyear

bonds with a stated interest rate of

11%,

and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the

straightline

method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2019?

A.

$1,845

B.

$1,320

C.

$525

D.

$13,040