The correct answer is option C- $20880
Notes
Total amount of discount = 228000-218400 = $9600
Total tenure of bonds = 5 years
Hence, amount to be amortized each year = 9600/5 = $1920
Interest payment = 228000*10% = $22800
Interest expense = 22800-1920 = $20880
Please comment in case of any issue and I will be happy to help.
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