You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense

for the year ended December $31,2024.$ Your accounting group provided you the following information on the company's debt:

Note: Use tables, Excel, or a flnanclal calculator. $($FV of $$1,$ PV of $$1.$ FVA of $$1.$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

On July $1,2024,$ Moonlight Bay issued bonds with a face amount of $$2,700,000.$ The bonds mature in $15$ 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 $31,2023,$ Moonlight Bay had a $10\%$ installment note payable to Third Mercantile Bank with a balance of $$700,000.$

The annual payment is $$160,000,$ payable each June $30.$

On January $1,2024,$ Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $$85,000$

beginning January $1,2024.$ Moonlight Bay's incremental borrowing rate on the date of the lease was $13\%$ and the lessor's implicit

rate, which was known by Moonlight Bay, was $12\%.$

Requlred:

Calculate interest expense for the year ended December $31,2024.$

Note: Round your answer to nearest whole dollar.