On January 2, 2023, Carla Vista Corp. issues a \$9-million, five-year note at LIBOR, with interest paid annually. To protect against the cash flow uncertainty related to interest payments that are based on LIBOR, Carla Vista entered into an interest rate swap to pay 6% fixed and receive LIBOR based on $9 million for the term of the note. The LIBOR rate for the first year is 5.8%. The LIBOR rate is reset to 6.7\% on January 2, 2024. Carla Vista follows ASPE and uses hedge accounting. On December 31, 2023, the fair value of the swap decreased by $13,500 : it increased by $4,000 on December 31,2024 . Assume that the criteria for hedge accounting under ASPE are met. (b) Your answer is incorrect. Calculate the net interest expense to be reported for this note and related swap transactions as at December 31,2023 and 2024