Denver Co. issued bonds with a face value of $100,000 and a stated interest rate of 8%. The bonds have a life of five years and were sold at 102 ½. If Denver amortizes discounts and premiums using the straight-line method, the amount of interest expense each full year would be:
A. $7,500.
B. $8,500.
C. $8,000
. D. $8,200.
