On January 1, 2020, Ayvalik Corporation sold 10% bonds with a face value of $2,660,000. The bonds mature in 5 years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2,464,000 to yield 12%. Using the effective-interest method of computing interest, how much Ayvalik Corporation will charge to interest expense in 2020?

a.$295,680.

b.$319,200.

c.$266,000.

d.$296,570.

e.None of the above.