On January 1, 20X2, Serenity Inc. issued a five-year note payable for $200,000 and received $190,000 in cash. The note bears interest at 6%, which is paid annually on December 31. There were $5,000 in directly related legal costs with respect to the note payable that Serenity paid in cash. Serenity has classified the note as an other financial liability. The company has a May 31 year end and reports under IFRS. Serenity calculates interest based on the numbers of days the liability is outstanding. January 1, 20X2 May 31, 20X2 is 151 days. What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year?

a. $5,327 b. $4,964 c. $5,681 d. $6,025