InterTech Corporation needed financing to build a new manufacturing plant. On June 30 of this year, InterTech issued $4,350,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did InterTech record this year for the December 31 payment?

Select one:

a. $115,294

b. $195,856

c. None of these are correct.

d. $153,725

e. $174,000