On January 2, 2018, Tylor Company issued a 4-year, $650,000 note at 8% fixed interest, interest payable semiannually. Tylor now wants to change the note to a variable rate note. As a result, on January 2, 2018, Tylor Company enters into an interest rate swap where it agrees to receive 8% fixed and pay LIBOR of 5.7% for the first 6 months on $650,000. At each 6-month period, the variable interest rate will be reset. The variable rate is reset to 6.5% on June 30, 2018 and this is the interest rate used for the next 6 months.

How much interest expense will Tyler Company report for the year ending December 31, 2018 if this is their only debt? (Enter numbers only for your answer)