On January 1, Ayayai Corp. issues $4440000, 5-year, 12% bonds at 97 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a:

credit to Discount on Bonds Payable, $26640.

debit to Interest Expense, $532800.

credit to Discount on Bonds Payable, $13320.

debit to Interest Expense, $266400.