XYZ Corporation issued $1,000,000 of 5-year bonds on January 1, 2023, with a stated interest rate of 6%. The bonds pay interest annually on December 31st. The bonds were sold at a discount of $79,854.20, resulting in an effective yield of 8%. The company uses the effective interest method for amortization of the discount. Answer the following questions based on this information. How much interest expense will be recognized in the first year?