Cramer Company sold 5-year, 8% bonds on October 1, 2013. The face amount of the bonds was $195,000, while the issue price was $208,000. Interest is payable on April 1 of each year. The fiscal year of

Cramer Company sold 5-year, 8% bonds on October 1, 2013. The face amount of the bonds was $195,000, while the issue price was $208,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2013, income statement (assume straight-line amortization)? (Do not round your intermediate calculation.)

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