Solderman Company Issued $460,000, 8%, 10-Year Bonds for $442,800 with a Market

Solderman Company issued $460,000, 8%, 10-year bonds for $442,800 with a market rate of 10%. The effective-interest method of amortization is to be used and interest is paid annually. The journal entry on the first interest payment date would include a:

A) credit to Interest Expense of $36,800.
B) credit to Cash of $44,280.
C) credit to Discount on Bonds Payable of $7480.
D) credit to Interest Expense of $7480.