The Platte Corporation issues a 5-year note payable on January 1, Year 1 for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.

Which of the following correctly shows the effects of the December 31, Year 2 payment (rounded to the nearest whole dollar)?

Assets = Liab. + Equity Revenue - Expense = 205 250 = A. (1,156) = (951) + (205) B.|(1,156)| = || (906) + (250) C. (1,156) = (951)+ (205) D. (1,156) = (951) + (205) 205 205 = NA NA - = Net Inc. (205) (250) (205) (205) Cash flow (1,156) FA (906) FA/(250) OA (951) FA/(205) OA (1,156) OA