On January 1, 2018, Legion Company sold $240,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $157,417, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of: (Round your answer to the nearest dollar amount.)

Multiple Choice

• $9,445
• $14,400
• $7,200
• $28,800