Barney Inc. has a December 31 fiscal year. On May 1, year 1, Barney Inc. issued bonds that pay interest on October 31 and April 30. The bonds were issued for $ 102000. The bonds have a face value of $ 89000. The bonds pay interest at an annual interest rate of 9 %. The annual market rate on the bonds at the time they were issued was 2 %. The current annual market rate on bonds is 9 %.

Calculate interest expense on the bonds for the year ended December 31, year 1. Round your answer to the nearest dollar.