On January 1, 2020, the Baker Corporation issued 10% bonds with a face value

of $50,000. The bonds are sold for $54,000. The bonds pay interest

semiannually on June 30 and December 31 and the maturity date is December

31, 2029. Baker records straight-line amortization of the bond premium. The

bond interest expense for the year ended December 31, 2020, is

a. $2,500

b. $2,700

c. $4,600

d. $5,000