Spigolo Ltd., issued $600,000 of 10-year, 9% bonds on June 30, 2007, for

$562,500. This price provided a yield of 10% on the bonds. Interest is payable semi-annually on December 31 and June 30. If Spigolo uses the effective interest method, determine the amount of interest expense to record if financial

statements are issued on October 31, 2007