Wood Corporation owns 70 percent of Carter Company%u2019s voting shares. On January 1, 20X3, Carter sold bonds with a par value of $600,000 at 98. Wood purchased $400,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1.

what amount of interest expense should be reported in the 20X4 consolidated income statement?

how you get 12,000??