BAC Manufacturing Company, a calendar year C corporation, took out a substantial, 36-month business loan on January 1, Year 4. Using the information provided in the exhibit, calculate BAC Manufacturing Company's business interest expense deduction for Years 4 through 7, and the amount of any disallowed business interest expense each year that is carried forward to the following year. Enter the amounts in the table below as positive values. If a value is zero, enter a zero (0).

BAC Company Selected Annual Taxable Income and Expense Information
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
Gross operating revenue	$33,000,000	$27,000,000	$30,000,000	$21,000,000	$37,000,000	$31,000,000	$28,000,000
Business interest income	$0	$200,000	$100,000	$0	$700,000	$300,000	$0
Business interest expense	$0	$0	$0	$3,300,000	$3,000,000	$2,500,000	$0
Depreciation expense	$1,500,000	$2,500,000	$1,000,000	$1,000,000	$1,500,000	$2,000,000	$1,000,000
Other operating expenses	$2,100,000	$20,000,000	$25,000,000	$11,000,000	$27,000,000	$22,000,000	$25,000,00