Wolford Company Borrowed $1,000,000 from U

Multiple Choice

Wolford Company borrowed $1,000,000 from U.S. Bank on January 1, 2013 in order to expand its mining capabilities. The five-year note required annual payments of $260,436 and carried an annual interest rate of 9.5%. What is the amount of expense Wolford must recognize on its 2014 income statement?

A) $95,000
B) $79,284
C) $70,259
D) $62,073