On January 1 2017 $2000000 10-year 10% bonds were issued for $1943000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable the amortization amount per year is

A) $19430.
B) $4750.
C) $2850.
D) $5700.

Straight-Line Method

A depreciation technique that allocates an equal proportion of the cost of an asset to each year of its useful life.

Amortize Discount

The process of gradually writing off the discount on bonds payable over the life of the bond, effectively recognizing some interest expense each period.

Bonds Payable

Long-term liabilities that represent the amount a corporation owes to bondholders.