Wolford Company Borrowed $2,000,000 from U

Multiple Choice

Wolford Company borrowed $2,000,000 from U.S. Bank on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of $520,872 and carried an annual interest rate of 9.5%. What is the amount of expense Wolford must recognize on its 2017 income statement?

A) $190,000
B) $158,568
C) $140,518
D) $124,146