On January 2, 2023, Seahawks Corp. purchases a new machine. The company agrees to make a $3,000 cash down payment, plus $16,000 to be paid in eight semi-annual instalments of $2,000 each, starting July 1, 2023. The company signs a non-interest- bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8%. Rounding to the nearest dollar (if necessary), what is Seahawks' recorded interest expense at the end of year one? a) $1,520 b) $1,317 c) $1,800 d) $1,233