At the beginning of the year, your company borrows $23,200 by signing a four-year promissory note that states an annual interest rate of 7% plus principal repayments of $5,800 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter? Multiple Choice Increase current liabilities by $6,206.00; increase non-current liabilities by $17,400 Increase current liabilities by $406.00; increase non-current liabilities by $23,200 Increase current liabilities by $1,624; increase non-current liabilities by $23,200 Increase current liabilities by $6,206.00; increase non-current liabilities by $23,200 A company paid $515,000 to purchase equipment and $16,500 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 29,500 hours throughout its estimated useful life of seven years. The estimated residual value of the equipment is $6,500. The company began using the equipment on May 1, 2021. The company has an October 31, 2021 year-end. It used the equipment for a total of 12,700 hours between May 1 and October 31, 2021. Using the units-of-production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2021? Multiple Choice $226,017 $525,000 $220,017 $113,008