On January 1, Year 1, Hanover Corporation issued bonds with a $79,500 face value, a stated rate of interest of 8%, and a 5 . year term to maturity. The bonds were issued at 97 . Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year How much interest expense will Hanover report on its income statement on Decomber 31, Year 1 ? (Round your answer to the nearest whole dollar amount.)