On January 1, 2016, Alldredge Company purchased equipment and signed a six-year mortgage note for $186,000 at 15%
The note will be paid in equal annual installments of $49,148, beginning January 1, 2017. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number.)
A) $49,148
B) $21,048
C) $27,900
D) $164,752
B .Beginning
Balance Principal
Payment Interest
Expense Total
Payment Ending
Balance
01/01/2016 $186,000
01/01/2017 $186,000 $21,248 $27,900 $49,148 164,752
01/01/2018 164,752 24,435 24,713 49,148 140,317
01/01/2019 140,317 28,100 21,048 49,148 112,217
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