A corporation issues $500,000, 8%, 5-year bonds on January 1, 2015, for $479,000. 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, 2015's adjusting entry is

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The bond discount is $21,000 ($500,000 - $479,000). 
Dividing the bond discount by the 5-year life of the bond gives us an annual amortization of $4,200 ($21,000 ÷ 5). 
Therefore, the amount of bond interest expense to be recognized in the December 31, 2015's adjusting entry is the sum of the annual interest payment of $40,000 ($500,000 x 8%), plus the annual amortization amount of bond discount of $4,200, which equals $44,200.

A Corporation Issues $500,000, 8%, 5-Year Bonds on January 1