Bennett Industries purchased a large piece of equipment from Crumpet Company on January 2, 20X1. Bennett signed a note, agreeing to pay Crumpet $400,000 for the equipment on December 31, 20X3. The market rate of interest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years is $317,520. On January 2, 20X1, Bennett recorded the purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. On December 31, 20X1, Bennett recorded an adjusting entry to account for interest that had accrued on the note. What is the approximate amount of interest expense that would have accrued at December 31, 20X1? Selected Answer: Correct $25,402 Answers: Correct $25,402 $32,000 $76,200 $96,000