ABC Company purchased an asset that cost $480,000 on January 1, 2016. Arrangements were made with the supplier to pay $30,000 cash on January 1, 2016, and the balance was to be paid over a four-year period, with equal payments to be made the end of each month, beginning 2/1/16 and ending 1/1/20.

1. Provide the first-year amortization for this loan in the table below.Each payment will include principal plus interest on the unpaid balance at an annual rate of 6% per year.
2. Assuming that interest expense for 2016 is computed as the total interest expense on each payment from 2/1/16 through 1/1/17, what is the total interest expense for 2016?

Complete the following table: Reduction Interest in Unpaid Date Payment Expense Principal Principal 1/1/16 2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16 8/1/16 9/1/16 10/1/16 11/1/16 12/1/16 1/1/17