On January 1 of Year 1, Congo Express Airways issued $3,600,000 of 6% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,270,000 and the market rate of interest for similar bonds is 7%. The bond premium or discount is being amortized at a rate of $11,000 every six months. The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be:

a) $238,000

b) $216,000

c) $252,000

d) $194,000

e) $119,000