On July 1, 2020, Harry Ltd. purchased $200,000 (par value) of Princes 8% bonds. Because the market rate was 9%, Harry purchased them for $186,992. The bonds pay interest semi-annually on December 31 and June 30. Harry uses the amortized cost model and the effective-interest method to recognize interest income on bond investments. Rounding values to the nearest dollar (if necessary), the bond discount to be amortized on December 31, 2020 is

$8,000.

$8,415.

$7,585.

$415.