On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 offering a 4% discount. They had a 20 year term, a stated rate of interest of 7% and an effective rate of interest of 7.389%. Assuming Residence uses the effective interest rate method, the amount of bond discount amortization recognized on December 31, Year 1 is (round any necessary computations to the nearest whole dollar)