A company issued $250,000 of 4%, 5-year bonds on January 1, 2018, with interest payable

semiannually every June 30 and December 31. The bonds sold for $228,674, a price reflecting

the issuance dates 6% market rate. What amount will the company report as interest expense

on these bonds for fiscal 2018? Answer this question by constructing a partial amortization

schedule for the bonds, completed through the second interest payment