Problem:
ON January 1, 2007 the Queen Corporation issued 10% bonds with a face value of $100,000. The bonds are sold for $98,000. THe bonds pay interest semianuually on June 30 and December 31 and the maturity date is December 31, 2011. Queen records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31,2007 is?