A corporation issues $550000, 8%, 5-year bonds on January 1,2020 for $533000. Interest is paid annually on

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A corporation issues $550000, 8%, 5-year bonds on January 1,2020 for $533000. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of interest expense to be recognized on December 31, 2020 is

$25980.

$32100.

$3060.

$29040.