On December 1, 2026, Mason Corp. sold $800,000 of its ten-year, 8% term bonds dated November 1, 2026. The bonds were sold to yield 10%, with total proceeds of $700,000 plus accrued interest. Interest is paid every May 1 and November 1. What amount should Mason report for interest payable in its December 31, 2026 balance sheet?

Select one:

a.

$5,333

b.

$16,000

c.

$10,667

d.

$20,000