10.1-*PLEASE ANSWER ALL 5 QUESTIONS*

5 multiple choice questions.

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n December 31, Year 1. What is the interest expense for Year 1 and Year 2, respectively? lote: Round your final answers to the nearest dollar. Multiple Choice $3,200 and $14,000 $16,000 and $16,350 $16,000 and $13,273 $20,625 and $16,000 Chico Company borrowed $40,000 on a four-year, 8% installment note. How will this transaction affect Chico's financial statements? Multiple Choice Cash and notes payable increase by $43,200 Cash and interest payable increase by $40,000 Cash and interest payable increase by $43,200 Cash and notes payable increase by $40,000 rincipal and interest. With this loan, the amount of interest expense that Davis reports on its income statement will be the same for each year of the loan. vhole dollar). he annual payment on the loan equals $81,150. Ihat is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice $25,920 $81,150 $74,658 $55,230