Question - On January 1, Year 1, Melas Corporation purchased a machine from Wade, Inc. 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?