On January 1, Martinez Corp. issues $2640000, 5-year, 12% bonds at 98 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

debit to Interest Expense, $158400.

credit to Discount on Bonds Payable, $10560.

credit to Discount on Bonds Payable, $5280.

debit to Interest Expense, $316800.