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Sanders Co. issued $500,000 of 5% bonds on January 1, 2021, due on January 1, 2026, with interest payable each January 1 and July 1.

Sanders Co. issued $500,000 of 5% bonds on January 1, 2021, due on January 1, 2026, with interest payable each January 1 and July 1. The bonds were sold to yield 9%. If the discount were amortized by the effective-interest method, what amount of interest expense would Sanders report in 2021 related to the bond?

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