On January 1, 2016, Labtech Circuits borrowed $120,000 from First Bank by issuing a two-year, 9% note, payable on December 31, 2018. Labtech wanted to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. Therefore, Labtech entered into a two-year interest rate swap agreement on January 1, 2016, and designated the swap as a fair value hedge. The agreement called for the company to receive payment based on an 9% fixed interest rate on a notional amount of $120,000 and to pay interest based on a floating interest rate tied to LIBOR. The contract called for cash settlement of the net interest amount on December 31 of each year.

Floating (LIBOR) settlement rates were 9% at inception and 10%, 8%, and 8% at the end of 2016, 2017, and 2018, respectively. The fair values of the swap are quotes obtained from a derivatives dealer. These quotes and the fair values of the note are as follows:

	January 1	December 31
	2016	2016	2017	2018
Fair value of interest rate swap		0		$	(1,959	)	$	1,135		$	0
Fair value of note payable	$	120,000		$	118,041		$	121,135		$	120,000

Required:
1.	Calculate the net cash settlement at the end of 2016, 2017, and 2018.(Negative amounts should be indicated by a minus sign.)