On September 1, 2025, Nils purchased $500,000, 8% bonds, paying $461,500 plus the accrued interest. The bonds pay interest semiannually on July 1 and January 1. Effective rate is 10%. On the 12/31/25 balance sheet, Interest Receivable is:

Select one:

a.

$23,075

b.

$18,460

c.

$13,333

d.

$20,000

e.

$40,000