On January 1, 20X1, Delarosa Company issues a 5 year $50,000 bond that pays 5 percent interest each year starting on December 31, Year One. The negotiated rate is 8 percent per year. The bond is issued for $43,900. What amount of interest expense will the company report on its income statement for 20X2?

Ps. 3720 is NOT a correct answer.