Collins Company borrowed $1,250,000 from BankTwo on January 1, 2019, in order to expand its mining capabilities.The five-year note required annual payments of $325,545 and carried an annual interest rate of 9.5%.What is the amount of expense Collins must recognize on its 2020 income statement?
A)$118,750.
B)$99,104.
C)$87,821.
D)$77,591.

Question

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The Answer of Collins Company borrowed $1,250,000 from BankTwo on January 1, 2019, in order to expand its mining capabilities.The five-year note required annual payments of $325,545 and carried an annual interest rate of 9.5%.What is the amount of expense Collins must recognize on its 2020 income statement?
A)$118,750.
B)$99,104.
C)$87,821.
D)$77,591.

Collins Company Borrowed $1,250,000 from BankTwo on January 1, 2019