On January 1, 2022, Pipestone Corporation issued a five-year, $40,000,6% bond. The interest is payable annually each December 31 . The issue price was $38,360 based on an 7% effective interest rate. Pipestone uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31,2022 is closest to: Multiple Choice $2,400. $2,685. $2,302. $3,123