On January 2, 2016, Jenga Company purchased new manufacturing equipment. They paid $50,000 as a down payment and issued a long-term note to finance the balance. The note, which carries an interest rate of 4%, requires Jenga to make semiannual loan payments of $35,000 for five years, with the first payment due on June 30, 2016. Determine the amount of interest expense Jenga will record with the SECOND interest payment (on December 31, 2016). Round all parts of your calculation as you work through the effective interest amortization schedule to the nearest whole dollar