Question: Beaver Cor issued $ 4 0 0 , 0 0 0 of 4 % , 1 0 year bonds on Jan 1 for $ 3

Beaver Cor issued $400,000 of 4%,10 year bonds on Jan 1 for $368,822. This price provided a yield of 5% on the bonds. Interest is payable semiannually on June 30 and Dec 31. If Beaves uses the effective-interest method, the amount of interest expense reported on income statement for the year ended Dec 31. Should be?

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