On January 1, Year 1, Weller Company issued bonds with a $420,000 face value, a stated rate of interest of 10%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8%. Interest is paid annually on December 31.

Assuming Weller issued the bond for $437,940, what is the amount of interest expense that will be recognized during Year 3?