Question:Andrews Inc. issues a $497,000, 10% 3-years mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year?
A $16,567
B $49,740
C $34,670
D $347,600
+ AnswerC
+ Report