On January 1 of Year 1, Congo Express Airways issued $2,500,000 of 5% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,254,994 and the market rate of interest for similar bonds is 6%. The bond premium or discount is being amortized at a rate of $8,167 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

a) 2712500

b)2271328

c)2333828

d)2650000

e)2728672