Lassen Corporation Issued Ten-Year Term Bonds on January 1,2010,with a Face

Lassen Corporation issued ten-year term bonds on January 1,2010,with a face value of $800,000.The face interest rate is 8 percent and interest is payable semi-annually on June 30 and December 31.The bonds were issued for $690,960 to yield an effective annual rate of 10 percent.The effective interest method of amortization is to be used.The entry on June 30,2010,to record the payment of interest and amortization of discount will be:

A)
$\begin{array}{l}\text { Bond Interest Expense } &32,000\\\text { Cash }&&32,000\end{array}$

B)
$\begin{array}{llr} \text { Bond Interest Expense } &34,548\\ \text { Unamortized Bond Discount } &&2,548\\ \text { Cash } &&32,000\end{array}$

C)
$\begin{array}{llr} \text { Bond Interest Expense} &34,548\\ \text { Cash } &&34,548\\\end{array}$

D)
$\begin{array}{llr} \text {Bond Interest Expense } &32,000 \\ \text {Unamortized Bond Discount } &&32,000 \\\end{array}$