Dri Company issues 5,000,000, 7.8%, 20-year bonds to yield 8% on July 1, 2018. Interest is paid on July 1 and January 1. The proceeds from the bonds are 4,901,038. (Two questions are based on this information. You may find and complete them now.) What amount of interest expense will be reported at the end of 2019?

Select one:

a. None of these answers.

b. 392,125.

c. 390,000.

d. 392,210.

e. 196,042.