On January 1, Elias Corporation issued 7% bonds with a face value of $74,000. The bonds are sold for $71,780. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31,10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $432 b. $5,402 c. $5,180 d $2.220