Jane's Donut Co. borrowed $197,000 on January 1, 2013, and signed a two-year note bearing interest at 9%. Interest is payable in full at maturity on January 1, 2015. In connection with this note, Jane's should report interest expense at December 31, 2013, in the amount of:

a)	$37,588.
b)	$35,460.
c)	$17,730.
d)	$0.