Question: The below information will be used for the next two questions. A Company issued a bond payable with detachable warrants on the interest payment date

The below information will be used for the next two questions.

A Company issued a bond payable with detachable warrants on the interest payment date as follows.

Bond payable ($1,000 par value; 400 bonds)$400,000
Coupon rate4.70%
Bond issue price$414,000
The fair value of the bonds after issuance$390,000
Term10 years
Number of detachable warrants per bond50
The fair value of the warrants after issuance$2.00
Stock purchase price$15.00
Warrants exercised5,000

1 warrant = 1 share of $1 par value stock

What is interest expense in 20X1?

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