On January 1, 2016, Labtech Circuits borrowed $270,000 from First Bank by issuing a two-year, 6% 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 8% fixed interest rate on a notional amount of $270,000 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 8% at inception and 9%, 7%, and 7% 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 December 31 January 1 2016 2016 2017 2018 0 $ (3,459) $ 2,635 $ Fair value of interest rate swap Fair value of note payable $270,000 0 $266,541 $272,635 $270,000 Required 1. Calculate the net cash settlement at the end of 2016, 2017, and 2018.(Negative amounts should be indicated by a minus sign.) December 31 2016 2017 2018 Net interest receipts (payments)