On 1 December, Year 1, Bradley Corporation Incurs a 15-Year

On 1 December, Year 1, Bradley Corporation incurs a 15-year $200 million mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2.4 million, which include interest computed at the rate of 12% per year. The first monthly payment is made on 31 December, Year 1.
-The portion of the second monthly payment made on 31 January, Year 2, which represents repayment of principle is:

A) $400,000.
B) $404,000.
C) $2,400,000.
D) $1,996,000.