When recording the 1st annual interest payment on 5%, $100,000, 2-year bonds that were issued at $102,070 when the market rate of interest was 4.25% includes a debit to Premium on Bonds Payable of ______ assuming the straight-line method of amortization is used.
A. $750 

B. $765 

C. $662 

D. $1,035

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