At the beginning of 2017, Waterway Industries issued 10% bonds with a face value of $5500000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5095200 to yield 12%. Waterway uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? (Round your answer to the nearest dollar.)

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