On January 1, 20x1, when the market interest rate was 15%, Luba corporation issued 1- year bonds in the face amount of $500,000 with interest at 12% payable semiannually. How much of the bond's discount should be amortized by the effective interest method on July 1, 20x1?

A: $1856.06

B: $1766.62

C: $1810.79

D: $1756.6

E: $1902.46