Company sells

$350,000

of

9%,

10-year

bonds for

90.9777

on April 1,

2018.

The market rate of interest on that day is

10.5%.

Interest is paid each year on April 1. The issue price of the bond is

$318,422.

Sunrise

Company uses the straight-line amortization method. The amount of interest expense for each year will be (Round intermediary calculations to the nearest whole number.)