On January 1, 20X4, Golf Emporium Inc. (GEI) issued (sold) $2,000,000 of seven-year bonds that pay 5% interest semi-annually on June 30 and December 31. The market rate of interest at time of issuance was 4%. Transaction costs directly related to the issuance of these bonds totaled $20,000. GEI classified this liability at amortized cost. What amount of interest expense pertaining to the bonds should GEI report on its statement of comprehensive income for the six-month period ended June 30, 20X4?

a.$42,021

b.$43,706

c.$44,122

d.$50,000