Question: A corporation issues $ 228000 , 10 %, 5 -year bonds on January 1, 2020, for $ 218400 . Interest is paid annually on January

A corporation issues $228000, 10%, 5-year bonds on January 1, 2020, for $218400. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2020’s adjusting entry is

$1920.

$24720.

$22800.

$20880.

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