Jones Corporation issued $400,000 of its 8%, 10-year bonds, dated January 1, 2016, at face value plus accrued interest on May 1, 2016. Interest is paid on January 1 and July 1. Jones uses the most common method to record the sale of the bonds between interest payment periods.

Refer to Exhibit 14-6. The amount of bond interest expense reported on the year-end 2016 income statement would be (please show steps and not just answers)