On January 1, Y1, Mahoney issued $10,000 in bonds for $9,400. They were 5-year bonds with a stated rate of 4% and pay semi-annual interest. Mahoney uses the straight-line method to amortize the bond discount. On December 31, Y1, how much will Mahoney report as interest expense on its income statement with respect to these bonds? a. $0 b. $520 c. $376 d. $400