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[The following informationapplies to questions 3-6 displayed below.]Kruse Corporation holds 60 percent of the voting common sharesof Gary’s Ice Cream Parlors. On January 1, 20X6, Gary’s purchased$50,000 par value, 10 percent first mortgage bonds of Kruse fromCane for $58,000. Kruse originally issued the bonds to Cane onJanuary 1, 20X4, for $53,000 (assuming a market interest rate of9.074505%). The bonds have a 10-year maturity from the date ofissue and pay interest semiannually on June 30th and December31st. Gary’s reported net income of $20,000 for20X6, and Kruse reported income (excluding income from ownership ofGary’s stock) of $40,000. 3.What amount of interest expense does Kruse record for 20X6?(Do not round your intermediate calculations. Round yourfinal answer to nearest whole dollar)$4,805.$4,756.$4,767.$4,777.