On December 31, 2019, a corporation issued $180,000 face value, 8 percent bonds that mature 10 years from the date of issue. The issue price was 98. If the firm uses the straight-line method of amortization, interest expense for 2020 will be reported at

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The annual interest payment for the bonds is $180,000 x 8% = $14,400. 
Since the issue price was 98, the company received only 98% of the face value or $180,000 x 0.98 = $176,400 cash from the bond issuance. 
The difference between the face value and the cash received is the bond discount, which is $180,000 - $176,400 = $3,600. 
To amortize the bond discount over the 10-year life of the bonds, we need to divide the discount by the number of interest periods, which is 10 x 2 = 20 (since the bonds pay semiannual interest). 
Therefore, the annual amortization of the bond discount is $3,600 / 20 = $180. 
As a result, the interest expense for 2020 will be the sum of the annual interest payment ($14,400) and the annual amortization of the bond discount ($180), which equals $14,400 + $180 = $14,760. 
Therefore, the correct answer is D.

On December 31, 2019, a Corporation Issued $180,000 Face Value