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In concept, notes are accounted for in precisely the same way as bonds. When a note is issued with an unrealistic interest rate, the effective market rate is used both to determine the amount recorded in the transaction and to record periodic interest thereafter.Knowledge Check $01$

On January $1,$ Year $1,$ Melas Corporation purchased a machine from Wade, Incorporated by issuing a $4\%,$ $$360,000,$ three$-$year note that requires interest to be paid semiannually. The machine could have been purchased at a cash price of $$340,497.$ Interest of $$7,200$ was payable semiannually on June $30$ and December $31.$ The annual market rate of interest was determined to be $6\%.$ What is the amount of interest that Melas will report for the six months ended June $30,$ Year $1?$

Note: Round your answer to the nearest whole number.