Ionia City issues 10-year 10%, general obligation serial bonds with a face amount of $2,000,000 on March 1 of the current year. The city has a calendar year end. Interest on the bonds payable is paid each March 1 and September 1 and the first of ten principal payments of $200,000 is due March 1 of next year. What is the interest expense for the current calendar year?

Select one:

A. $300,000.

B. $200,000.

C. $100,000.

D. $166,667.