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Pearl Inc. issued $540,000 of 9%, 10-year bonds on June 30, 2020, for $447,091. This price provided a yield of 12% on the bonds. Interest

Pearl Inc. issued $540,000 of 9%, 10-year bonds on June 30, 2020, for $447,091. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Pearl uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020.

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