December 1, 2014, Garden Corporation incurs a 30-year, $400,000 mortgage liability upon purchase of a warehouse. This mortgage is payable in monthly installments of $4,116, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, 2014.

1. How much of the first payment made on December 31, 2014, is allocated to repayment of principal? $________

2 What is the total liability related to this mortgage to be reported in Gardens balance sheet at December 31, 2014? (Do not separate into current and longterm portions.)

$________

3 The portion of the second monthly payment made on January 31, 2015, which represents interest expense is $________