On January 1, 2021, Splash City issues $450,000 of 9% bonds, due in 10 years, with interest payable quarterly each year. Portions of the bond amortization schedule appear below:

Date	Cash paid for interest	Interest expense	Increase in carrying value	Carrying value
1/1/2021				$371,988
3/31/2021	$10,125	$11,160	$1,035	$373,023
6/30/2021	$10,125	$11,191	$1,066	$374,089
*	*	*	*	*
*	*	*	*	*

What is the interest expense reported on December 31, 2021?

Multiple Choice

• $11,256

• $10,125

• $11,191

• $11,223