(Please show work)
On January 1, 2020, Clare Corporation issued $700,000, 6%, 5-year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $762,878. The market rate of interest when the bonds were issued was 4%. Under the effective-interest method, the interest expense for the six months ending July 1, 2020, would be closest to?