Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $280,000 of five-year bonds at 115. Annual Interest of 12 percent is paid semiannually on January 1 and July 1. Pepper purchased $180.000 of the bonds on August 31, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies: Note: Assume using straight-line amortization of bond discount or premium. Investment in Salt Corporation Bonds Interest Income Interest Receivable Bonds Payable Bond Premium Interest Expens Interest Payable Pepper Enterprises $185,700. 5,400 10,800 Salt Corporation $280,000 28,800 25,200 21,600 Required: a. Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3 (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) inforest expense