Jane's Donut Co. borrowed $190,000 on January 1, 2016, and signed a two-year note bearing interest at 14%. Interest is payable in full at maturity on January 1, 2018. In connection with this note, Jane's should report interest expense at December 31, 2016, in the amount of:

$0.

$53,200.

$26,600.

$56,392.