Statement of Comprehensive Income for the year ended 31 July 2016 (Extract) Sales 6 000 000 Cost of sales Gross profit 2 400 000 3 600 000 900 000 Operating expenses Profit from operations 2 700 000 Interest income 45 000 Interest expense Profit before tax 2 535 000 Income tax 760 500 Net profit 1 774 500 Required: 1. Interest has been calculated at 6% per year on the amount invested. Assume that there was no change in investments during the year, determine the value of the investment. (4 marks) 2. Calculate the interest expense for the year ended 31 July 2016.(2)