On January 1, 2021, Gardnier Company sold $800,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $708,000, priced to yield 12%. Gardnier records interest at the effective rate. Blair should report bond interest expense for the six months ended June 30, 2021 in the amount of Multiple Choice $42,480 $35.400 $48,000 $40,000