On January 1, Year 1, Zero Company Obtained a $52,000

Multiple Choice

On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. The December 31, Year 1 carrying amount in the allocation of periodic payments table for this installment note will be equal to:

A) $27,635
B) $40,201
C) $36,821
D) $39,000