On September 1, 2016, Demich Co. issued a note payable to National Bank in the amount of $2,400,000, bearing interest at 12%, and payable in three equal annual principal payments of $800,000. On this date, the bank's prime rate was 11%.
The first payment for interest and principal was made on September 1, 2017. At December 31, 2016, Demich should record accrued interest payable of ?
Please Provide calculation