On January 1, Anthony Corporation issued \(\$ 1,000,000,14 \%, 5\)-year bonds with interest payable on December 31.

The bonds sold for \(\$ 1,072,096\). The market rate of interest for these bonds was \(12 \%\). On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for:

(a) \(\$ 120,000\).

(b) \(\$ 125,581\).

(c) \(\$ 128,652\).

(d) \(\$ 140,000\).