On january 1, 2016 the Baker Corporation issued 10% bonds with a face value of $50,000. The bonds were sold for $46,000.

On january 1, 2016 the Baker Corporation issued 10% bonds with a face value of $50,000. The bonds were sold for $46,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is december 31, 2020. Baker records straight-line amortization of the bond discount. The bond interest expense for year ended December 31, 2016 is