[The following information applies to the questions displayed below.]On January 1, Year 1, the Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.Which of the following correctly shows the effects of the December 31, Year 2 payment (rounded to the nearest whole dollar)? Assets=Liab.+Stk.EquityRevenue?Expense=Net Inc.Stmt. ofCash FlowsA.(1,156)=(951)+(205)NA?205=(205)(1,156)FAB.(1,156)=(906)+(250)NA?250=(250)(906)FA/(250)OAC.(1,156)=(951)+(205)NA?205=(205)(951)FA/(205)OAD.(1,156)=(951)+(205)NA?205=(205)(1,156)OA

A. Option A
B. Option B
C. Option C
D. Option D


Answer: C

Business

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