1. On July 1, 2024, Moonlight Bay issued bonds with a face amount of $3,000,000. The bonds mature in 20 years and interest of 7% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 8%. Moonlight Bay records interest at the effective rate.
2. At December 31, 2023, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $600,000. The annual payment is $110,000, payable each June 30.
3. On January 1, 2024, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $75,000 beginning January 1, 2024. Moonlight Bays incremental borrowing rate on the date of the lease was 13% and the lessors implicit rate, which was known by Moonlight Bay, was 12%.

Required:

Calculate interest expense for the year ended December 31, 2024.

Thanks.