Terrapin, Inc. issues bonds with a par value of $20,000,000 on January 1, 2020. The bonds have an annual coupon rate of 6%, pay interest annually, and will mature in 7 years. If the market rate of interest on the bonds is 9% per year, then what is the annual interest expense the company will report if it uses the straight-line method to amortize the bond discount?

	a.	$1,200,000
	b.	$1,415,224
	c.	$1,625,055
	d.	$1,528,221
	e.	$1,631,396