Knowledge Check $01$

On January $1,$ Year $1,$ Duffy Enterprises issued $$200,000$ in bonds that mature in $10$ years. The bonds were issued at face value. The bonds have a stated interest rate of $5\%$ and pay interest once per year on December $31.$ What is the amount offinterest expense recorded on December $31,$ Year $1?$

Answer is complete but not entirely correct.

Interest expense