On January 1, 2019, a company issued $401,500 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $416,903 based on a 10% market interest rate. The effective-interest method of amortization is used.

Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019?

$20,845.

$20,075.

$24,090.

$25,014.