1) On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgage note for $194,000 at 15%. The note will be paid in equal annual installments of $51,262, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number.)

A. $51,262

B. $171,838

C. $21,953

D. $29,100

2) the second question is photographed! please help on 1&2!!

On July 1, 2019, Montana Company has bonds with balances as shown below. 65,000 Discount on Bonds Payable If the company retires the bonds for $74,150, what will be the effect on the income statement? O A. O B. sales revenue of $61,500 no effect on net income C. gain on retirement of $12,650 D. loss on retirement of $12,650