On January 1, 2020, National Retail purchased $100,000 of GEH Company bonds at a discount of $10,000. The GEH bonds pay 6% interest but were purchased when the market interest rate was 8% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. National Retail accounts for the bonds as a held-to-maturity investment and uses the effective interest method. In National Retails December 31, 2020, journal entry to record the second period of interest would include a credit to interest revenue of:

a.

$3,600

b.

$3,000

c.

$3,624

d.

$7,336

e.

$3,336