On January 1, Elias Corporation issued 7% bonds with a face value of $85,000. The bonds are sold for $82,450. 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. $496

b. $2,550

c. $6,205

d. $5,950