A town signs a subscription agreement by which it acquires the rights to use a computer program for 10 years. Annual subscription fees are $149,029. Based on an implicit interest rate of 8 percent per year, the fair value of the computer program is $1 million. When the town makes its second annual subscription payment, it would report in its governmentwide statements

A. interest expense of $80,000.

B. subscription expense of $149,029.

C. interest expense of $74,478.

D. subscription expense of $100,000.

Please provide explanation and calculation.