A firm issued \($250,000\) of ten-year, 12 percent bonds payable on January 1, for \($281,180,\) yielding an effective rate of ten percent. Interest is payable on January 1 and July 1 each year. The firm records amortization on each interest date. Bond interest expense for the first six months using effective interest amortization (see Appendix lOA) is:

a. $15,000.

b. $16,871.

c. $14,059.

d. $14,331.