Use the Following Information to Answer Bellow Questions

Use the following information to answer bellow Questions
At the beginning of 2020, a company borrowed $188,610, with payment of $100,000 to be made at the end of each of the years 2020 and 2021. The loan carries an interest rate of 4%. The company makes the $100,000 payment at the end of 2020 but is experiencing financial difficulties and renegotiates the terms of the loan. The creditor grants a concession by changing the payment due at the end of 2021 to $98,076, which changes the effective loan rate to 2%. No gain on restructuring is reported.
-The company reports interest expense in 2020 in the amount of:

A) $8,000.
B) $3,772.
C) $4,000.
D) $7,544.