On January 1, 2016, Demarest Company purchased equipment and signed a six-year mortgage note for$80,000 at 15%
The note will be paid in equal annual installments of $21,139, beginning January 1, 2017. Calculate the portion of principal amount paid on the third installment. (Round your answer to the nearest whole number.)
A) $12,086
B) $12,000
C) $21,139
D) $9,053
A .Beginning
Balance Principal
Payment Interest
Expense Total
Payment Ending
Balance
01/01/2015 $80,000
01/01/2016 $80,000 $9,139 $12,000 $21,139 70,861
01/01/2017 70,861 10,510 10,629 21,139 60,351
01/01/2018 60,351 12,086 9,053 21,139 48,265
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