Rikki Company received proceeds of $206,000 on 10-year, 6% bonds issued on January 1, 2017. The bonds had a face value of $200,000, pay interest annually on December 31, and have a call price of 101. Rikki uses the straight-line method of amortization. What is the amount of interest expense Rikki will show on its income statement for 2017?

Select one:

a. $12,600

b. $11,200

c. $11,400

d. $12,000