On November 1 of this year, Jaxon borrowed $38,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid interest of $3,420 relating to the 12-month period from November of this year through October of next year. Note: Do not round intermediate calculations. How much interest, If any, can Jaxon deduct this year if his business uses the accrual method of accounting for tax purposes