January 1, 2004, Nott Co, sold $2,000,000 of its 10% bonds for $1, 770, 592 to yield 12% interest is payable semiannually on January 1 and July 1. What amount should Nott report as interest expense for the six months ended June 30, 2004? $88, 532 $100,000 $106, 236 $12,000