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Franklin Company obtained a $ 1 3 5 , 0 0 0 line of credit from State Bank on January 1 , Year 1 .

Franklin Company obtained a $135,000 line of credit from State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 3% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month.1-Jan1-Feb1-MarAmount Borrowed or (Repaid)$ 42,000(16,000)42,000Prime Rate for the Month4.0%4.5%5.0%What is the amount of interest expense recognized in March? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

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