Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1. Pepper purchased $100,000 of the bonds on July 1, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies: Investment in Salt Corporation Bonds Interest Incone Interest Receivable Bonds Payable Bond Premium Interest Expense Interest Payable Required: Pepper Enterprises Salt Corporation $100,000 6,000 5,000 $200,000 13,475 18,039 12,000 a. Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.) Interest expense