Cramer Company sold 5-year, 8% bonds on October 1, 2011. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2011, income statement (assume straight-line amortization)?