The note payable relating to the June 2, and 10 transactions is a five-year note, with interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day year. [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $140,000. On June 10, eight days later, $26,750 was repaid. Interest expense must be calculated on the $140,000 for eight days. In addition, interest expense on the $113,250 balance of the loan ($140,000 less $26,750 = $113,250) must be calculated for the 20 days remaining in the month of June.]