On 1 January 2017,Bratios Company Purchases Equipment and Signs a 6-Year

Multiple Choice

On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $80,000 at 15%.The mortgage will be paid in equal annual instalments of $21,139,beginning 1 January 2018.Calculate the portion of interest expense paid on the third instalment.(Round to the nearest dollar. )

A) $21,139
B) $70,861
C) $9053
D) $12,000