On January 2,2015 , the Expansion Company sold a 10%,$10,000 face value bond with a maturity date of December 31, 2034 (i.e., the bond matures in 20 years). The required coupon payments are to be made annually each December 31 st. The bond was sold for $8,506 (rounded to nearest whole dollar) thereby giving an effective yield to maturity of 12%. Which of the following is NOT a correct statement: * A) The bond was sold at a discount of $1,494. B) Interest expense to be charged against income during the year 2015 (based on the effective interest method) is $1,021. C) The net book value of the bonds payable at December 31, 2015 (the end of the first year the issue is outstanding) is $8,527 (rounded). D) If the bond is redeemed for $9,300 after the coupon payment on December 31,2021 (i.e., at the end of the 7 th year), the Expansion Company will recognize a loss on redemption of $213. E) If the bond remains outstanding until its maturity date of December 31,2034 , the total interest to be charged against income over the 20 -year period will be $21,494