On January 1, Dias SA issued R$1,000,000, 10%, 5-year bonds with interest payable annually on December 31. The bonds sold for R$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 Interest Expense is for:

a. R$120,000.

b. R$125,581.

c. R$128,652.

d. R$140,000.