On January 1, the Elias Corporation issued 10% bonds with a face value of $102,000. The bonds are sold for $99,960. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten 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. $9,996 b. $10,404 c. $2,040 d. $10,200