On March 1, 2017, Jacob received a $130,000 loan from his employer. The loan bears interest at 1.5% per year. The interest is payable monthly and Jacob has always made the payments on time. The principal is repayable at the end of five years. Jacob used $95,000 of the loan toward the purchase of his home. The $35,000 that was left over, he used to purchase investments. Assume the prescribed interest rates for the current year were 3% for the first quarter and 4% for the remainder of the year. Required: Determine the amount to be included in Jacobs employment income for tax purposes for the current year. Round your answers to the nearest dollar.