Required informotion P10-5 (Static) Recording a Bond Issued at a Discount and Determining How the Issuance Affects Ratios LO10-3, 10-4, 10-6 [The following information applies to the questions displayed below.] On Jonuary 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a coupon rate of 6 percent. The bonds mature in 10 yeors ond poy interest annually every December 31 . When the bonds were sold, the annuol market rate of interest was 8 percent. The company uses the effective-interest amortization method. By December 31 of this year, the annual market rate of interest had increosed to 10 percent. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) 10-5 Part 2 What amount of interest expense is recorded on December 31 of this year? (Round "Interest Expense" to whole dollars.)