Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? c. What amount of total liabilities was reported on the December 31, Year 1, balance sheet? d. What total amount of cash was paid to the bank on March 31. Year 2, for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement? a. Amount of cash paid b. Interest expense C Total liabilities d. Amount of cash paid e. Interest expense Sanders Co. is planning to finance an expansion of its operations by borrowing $48,700. City Bank has agreed to loan Sanders the funds. Sanders has two repayment options: (1) to issue a note with the principal due in 10 years and with interest payable annually or (2) to issue a note to repay $4,870 of the principal each year along with the annual interest based on the unpaid principal balance Assume the interest rate is 10 percent for each option Required a. What amount of interest will Sanders pay in year 1 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.) b. What amount of interest will Sanders pay in year 2 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.) c. Which option is more advantageous if Sanders wants to minimize costs? Option 1 Option 2 a b Year 1 interest Year 2 interest More advantageous option c