Barney Inc. has a December 31 fiscal year. On June 1. year 1, Barney Inc. issued bonds that pay interest on November 30 and May 31. The bonds were issued for $ 112000. The bonds have a face value of $ 86000. The bonds pay interest at an annual interest rate of 8 %. The annual market rate on the bonds at the time they were issued was 2%. The current annual market rate on bonds is 4 %. Calculate interest expense on the bonds for the year ended December 31, year 1. Round your answer to the nearest dollar. (Please note that you do not require present value tables to answer this question so their omission is deliberate.)