Lesp Industries issues five$-$year bonds dated January $1,2015$ with a face value of $$2,000,000$ and $3\%$ coupon rate paid annually on December $31.$ The market interest rate on bonds of comparable risk and term is $4\%.$ The sales proceeds of the bonds are $$1,910,964.$ 

Under the effective interest rate method, the interest expense in $2017$ is closest to:

A$.$ $$77,096.$ 

B$.$ $$77,780.$ 

C$.$ $$77,807.$

 

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