On January 1, 2013, Solo Inc. issued 1,200 of its 7%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2023. Solo paid $52,000 in bond issue

On January 1, 2013, Solo Inc. issued 1,200 of its 7%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2023. Solo paid $52,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for the year is:

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