At January 1, 2021, Kane Company was indebted to Alli Bank under a $500,000, 8% note. The note was signed January 1, 2018, and was due December 31, 2022. Annual interest was last paid on December 31, 2019. Kane was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Alli Bank agreed to reduce last year's interest and the remaining two years' interest payments to $24,295 each and delay all payments until December 31, 2022, the maturity date. How much interest expense should Kane report approximately for 2022?

Multiple Choice

• $14,421

• $15,649

• $17,523

• $16,686