You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the companys interest expense for the year ended December 31, 2021. Your accounting group provided you the following information on the company's debt: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

On July 1, 2021, Moonlight Bay issued bonds with a face amount of $2,000,000. The bonds mature in 20 years and interest of 11% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 12%. Moonlight Bay records interest at the effective rate.

At December 31, 2020, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $530,000. The annual payment is $75,000, payable each June 30.

On January 1, 2021, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $40,000 beginning January 1, 2021. Moonlight Bays incremental borrowing rate on the date of the lease was 11% and the lessors implicit rate, which was known by Moonlight Bay, was 10%.

Required: Calculate interest expense for the year ended December 31, 2021. (Round your answer to nearest whole dollar. Enter amount as a positive value.)

TABLE 2 Present Value of $1 $1 PV (1+1)" wi 1.0% 1 0.99010 2 0.98030 3 0.97059 4 0.96098 5 0.95147 1.5% 0.98522 0.97066 0.95632 0.94218 0.92826 2.0% 2.5% 0.98039 0.97561 0.96117 0.95181 0.94232 0.92860 0.92385 0.90595 0.90573 0.88385 3.0% 3.5% 4.0% 0.97087 0.96618 0.96154 0.94260 0.93351 0.92456 0.91514 0.90194 0.88900 0.88849 0.87144 0.85480 0.86261 0.84197 0.82193 4.5% 0.95694 0.91573 0.87630 0.83856 0.80245 5.0% 5.5% 6.0% 0.95238 0.94787 0.94340 0.90703 0.89845 0.89000 0.86384 0.85161 0.83962 0.82270 0.80722 0.79209 0.78353 0.76513 0.74726 7.0% 8.0% 0.0% 0.0% 11.0% 12.0% 20.0% 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57870 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48225 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.23257 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.16151 11 12 13 14 15 0.89632 0.84893 0.80426 0.88745 0.83639 0.78849 0.87866 0.82403 0.77303 0.86996 0.81185 0.75788 0.86135 0.79985 0.74301 0.76214 0.72242 0.68495 0.74356 0.70138 0.66178 0.72542 0.68095 0.63940 0.70773 0.66112 0.61778 0.69047 0.64186 0.59689 0.64958 0.62460 0.60057 0.57748 0.55526 0.61620 0.58468 0.55491 0.52679 0.47509 0.42888 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.53997 0.50507 0.47257 0.44230 0.38782 0.34046 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.38753 0.35553 0.32618 0.29925 0.27454 0.35049 0.31728 0.28748 0.31863 0.28584 0.25668 0.28966 0.25751 0.22917 0.26333 0.23199 0.20462 0.23939 0.20900 0.18270 0.13459 0.11216 0.09346 0.07789 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.494470.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.05409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0_27027 0.23107 0.19784 0.16963 0.14564 0.04507 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.452800.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03756 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 25 0.77977 0.68921 0.609530.53939 0.47761 0.42315 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.37512 0.33273 0.29530 0.26223 0.233000 .18425 0.14602 0.11597 0.33348 0.29157 0.255090.22332 0.19563 0.15040 0.11591 0.08955 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.13513 0.11174 0.09256 0.02174 0.10153 0.08170 0.06588 0.01258 0.09230 0.07361 0.05882 0.01048 0.06934 0.05382 0.04187 0.00607 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 31 0.73458 0.63031 0.54125 0.46511 40 0.67165 0.55126 0.45289 0.37243 0.41199 0.39999 0.30656 0.35628 0.30832 0.26700 0.34423 0.29646 0.25550 0.25257 0.20829 0.17193 0.23138 0.22036 0.14205 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068 TABLE 4 Present Value of an ordinary Annuity of $1 1- (+1) PVA== ni 1 2 3 4 5 1.0% 1.5% 0.99010 0.98522 1.97040 1.95588 2.940992.91220 3.90197 3.85438 4.85343 4.78264 2.0% 2.5% 0.980390.97561 1.94156 1.92742 2.88388 2.85602 3.80773 3.76197 4.71346 4.64583 3.0% 0.97087 1.91347 2.82861 3.71710 4.57971 3.5% 4.0% 4.5% 0.96618 0.96154 0.95694 1.899691.886091.87267 2.80164 2.77509 2.74896 3.67308 3.62990 3.58753 4.51505 4.45182 4.38998 5.0% 0.95238 1.85941 2.72325 3.54595 4.32948 5.5% 0.94787 1.84632 2.69793 3.50515 4.27028 6.0% 0.94340 1.83339 2.67301 3.46511 4.21236 7.0% 0.93458 1.80802 2.62432 3.38721 4.10020 8.0% 0.92593 1.78326 2.57710 3.31213 3.99271 0.0% 0.0% 0.91743 0.90909 1.75911 1.73554 2.53129 2.48685 3.23972 3.16987 3.88965 3.79079 11.0% 12.0% 0.90090 0.89286 1.71252 1.69005 2.44371 2.40183 3.10245 3.03735 3.69590 3.60478 20.0% 0.83333 1.52778 2.10648 2.58873 2.99061 6 7 8 9 10 5.79548 5.69719 5.60143 6.728196.59821 6.47199 7.65168 7.485937.32548 8.56602 8.36052 8.16224 9.47130 9.22218 8.98259 5.50813 5.41719 6.349396.23028 7.17014 7.01969 7.97087 7.78611 8.75206 8.53020 5.32855 5.24214 5.15787 5.07569 4.99553 4.91732 4.76654 4.62288 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 5.389295.20637 6.87396 6.73274 6.595896.46321 6.33457 6.209795.97130 5.74664 7.607697.435337.268797.10782 6.952206.801696.51523 6.24689 8.31661 8.11090 791272 7.721737.537637.360097.02358 6.71008 4.48592 4.35526 4.23054 4.11141 3.32551 5.03295 4.86842 4.71220 4.56376 3.60459 5.53482 5.33493 5.14612 4.96764 3.83716 5.99525 5.759025 .53705 5.32825 4.03097 6.41766 6.14457 5.88923 5.65022 4.19247 11 12 13 14 15 10.36763 10.07112 9.78685 11.25508 10.90751 10.57534 12.13374 11.73153 11.34837 13.00370 12.54338 12.10625 13.86505 13.34323 12.84926 9.51421 10.25776 10.98319 11.69091 12.38138 9.252629.001558.76048 9.95400 9.66333 9.38507 10.63496 10.30274 9.98565 11.29607 10.92052 10.56312 11.93794 11.51741 11.11839 8.52892 9.11858 9.68285 10.22283 10.73955 8.30641 8.86325 9.39357 9.89864 10.37966 8.09254 7.88687 7.49867 7.13896 8.61852 8.38384 7.942697.53608 9.11708 8.85268 8.35765 7.90378 9.589659.294988.74547 8.24424 10.03758 9.71225 9.10791 8.55948 6.80519 6.49506 6.20652 5.93770 4.32706 7.16073 6.81369 6.49236 6.19437 4.43922 7.48690 7.10336 6.74987 6.42355 4.53268 7.78615 7.36669 6.98187 6.62817 4.61057 8.060697.60608 7.19087 6.81086 4.67547 16 17 18 19 20 14.71787 14.13126 15.56225 14.90765 16.39827 15.67256 17.22601 16.42617 18.04555 17.16864 13.57771 13.05500 14.29187 13.71220 14.99203 14.35336 15.67846 14.97889 16.35143 15.58916 12.56110 12.09412 13.16612 12.65132 13.75351 13.18968 14.32380 13.70984 14.87747 14.21240 11.65230 11.23402 12.16567 11.70719 12.65930 12.15999 13.13394 12.59329 13.59033 13.00794 10.83777 11.27407 11.68959 12.08532 12.46221 10.46216 10.86461 11.24607 11.60765 11.95038 10.10590 10.47726 10.82760 11.15812 11.46992 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 4.72956 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 4.77463 10.059099.371898.75563 8.20141 7.701627.24967 4.81219 10.33560 9.60360 8.95011 8.36492 7.839297.36578 4.84350 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 4.86958 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 25 22.02316 20.71961 19.52346 18.42438 17.41315 16.48151 15.62208 30 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 17.29203 40 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 19.79277 13.40472 14.82821 16.28889 18.40158 12.82115 14.09394 15.37245 17.15909 12.27524 13.41393 14.53375 16.04612 11.76408 12.78336 13.76483 15.04630 10.83553 11.65358 12.40904 13.33171 10.01680 10.67478 11.25778 11.92461 9.29224 8.64869 8.07507 7.56200 4.89132 9.82258 9.07704 8.42174 7.84314 4.94759 10.27365 9.42691 8.69379 8.05518 4.97894 10.75736 9.77905 8.95105 8.24378 4.99660 TABLE 6 Present Value of an Annuity Due of $1 PVAD= |x (1+i) ni 1 2 3 4 5 1.0% 1.00000 1.99010 2.97040 3.94099 4.90197 1.5% 1.00000 1.98522 2.95588 3.91220 4.85438 2.0% 1.00000 1.98039 2.94156 3.88388 4.80773 2.5% 1.00000 1.97561 2.92742 3.85602 4.76197 3.0% 1.00000 1.97087 2.91347 3.82861 4.71710 3.5% 1.00000 1.96618 2.89969 3.80164 4.67308 4.0% 4.5% 1.00000 1.00000 1.96154 1.95694 2.886092.87267 3.77509 3.74896 4.62990 4.58753 5.0% 1.00000 1.95238 2.85941 3.72325 4.54595 5.5% 1.00000 1.94787 2.84632 3.69793 4.50515 6.0% 1.00000 1.94340 2.83339 3.67301 4.46511 7.0% 1.00000 1.93458 2.80802 3.62432 4.38721 8.0% 0.0% 1.00000 1.00000 1.925931.91743 2.78326 2.75911 3.57710 3.53129 4.312134.23972 0.0% 1.00000 1.90909 2.73554 3.48685 4.16987 11.0% 12.0% 1.00000 1.00000 1.90090 1.89286 2.71252 2.69005 3.44371 3.40183 4.10245 4.03735 20.0% 1.00000 1.83333 2.52778 3.10648 3.58873 6 7 8 9 10 5.85343 5.78264 6.79548 6.69719 7.728197.59821 8.65168 8.48593 9.56602 9.36052 5.71346 5.64583 5.57971 6.60143 6.50813 6.41719 7.471997.349397.23028 8.32548 8.17014 8.01969 9.16224 8.97087 8.78611 5.51505 5.45182 6.32855 6.24214 7.11454 7.00205 7.87396 7.73274 8.607698.43533 5.38998 5.32948 6.15787 6.07569 6.89270 6.78637 7.595897.46321 8.26879 8.10782 5.27028 5.99553 6.68297 7.33457 7.95220 5.21236 5.10020 4.99271 4.88965 5.91732 5.76654 5.62288 5.48592 6.58238 6.389296.20637 6.03295 7.209796.97130 6.74664 6.53482 7.801697.51523 7.246896.99525 4.79079 4.69590 4.60478 3.99061 5.35526 5.23054 5.11141 4.32551 5.86842 5.71220 5.56376 4.60459 6.33493 6.14612 5.96764 4.83716 6.75902 6.53705 6.32825 5.03097 11 12 13 14 15 10.47130 11.36763 12.25508 13.13374 14.00370 10.22218 9.98259 9.75206 9.53020 11.07112 10.78685 10.51421 10.25262 11.90751 11.57534 11.25776 10.95400 12.73153 12.34837 11.98318 11.63496 13.54338 13.10625 12.69091 12.29607 9.31661 10.00155 10.66333 11.30274 11.92052 9.11090 8.91272 9.76048 9.52892 10.38507 10.11858 10.98565 10.68285 11.56312 11.22283 8.72173 9.30641 9.86325 10.39357 10.89864 8.537638.360098.02358 7.710087.41766 9.09254 8.886878.49867 8.13896 7.80519 9.61852 9.38384 8.942698.53608 8.16073 10.11708 9.85268 9.35765 8.90378 8.48690 10.58965 10.29498 9.74547 9.24424 8.78615 7.14457 6.889236.650225.19247 7.49506 7.20652 6.93770 5.32706 7.813697.49236 7.19437 5.43922 8.10336 7.74987 7.42355 5.53268 8.366697.98187 7.62817 5.61057 16 14.86505 17 15.71787 18 16.56225 1917.39827 20 18.22601 14.34323 15.13126 15.90765 16.67256 17.42617 13.84926 14.57771 15.29187 15.99203 16.67846 13.38138 12.93794 12.51741 12.11839 14.05500 13.56110 13.09412 12.65230 14.71220 14.16612 13.65132 13.16567 15.35336 14.75351 14.18968 13.65930 15.97889 15.32380 14.70984 14.13394 11.73955 12.23402 12.70719 13.15999 13.59329 11.37966 11.83777 12.27407 12.68959 13.08532 11.03758 11.46216 11.86461 12.24607 12.60765 10.71225 11.10590 11.47726 11.82760 12.15812 10.10791 10.44665 10.76322 11.05909 11.33560 9.55948 9.85137 10.12164 10.37189 10.60360 9.060698.60608 8.19087 7.81086 5.67547 9.31256 8.82371 8.37916 7.97399 5.72956 9.543639.02155 8.54879 8.11963 5.77463 9.75563 9.20141 8.70162 8.24967 5.81219 9.95011 9.36492 8.83929 8.36578 5.84350 21 19.04555 18.16864 25 22.24339 21.03041 30 26.06579 24.37608 40 33.16303 30.36458 17.35143 16.58916 19.91393 18.88499 22.84438 21.45355 27.90259 25.73034 15.87747 15.21240 17.93554 17.05837 20.18845 19.03577 23.80822 22.10250 14.59033 16.24696 17.98371 20.58448 14.00794 15.49548 17.02189 19.22966 13.46221 14.79864 16.14107 18.01704 12.95038 14.15170 15.33310 16.92866 12.46992 13.55036 14.59072 15.94907 11.59401 12.46933 13.27767 14.26493 10.81815 11.52876 12.15841 12.87858 10.12855 10.70661 11.19828 11.72552 9.51356 8.96333 8.46944 5.86958 9.98474 9.34814 8.78432 5.93710 10.36961 9.65011 9.02181 5.97472 10.75696 9.93567 9.23303 5.99592