Durch quarter Rec $ MRK Corp took out a seven month, 9%, $500,000 loan on November 1st, Year 1. Principal and interest is due at maturity of the loan on May 31, Year 2. As of December 31, Year 1, what amount, if any, should TA Inc. report for interest expense on the annual income statement prepared on 12/31/yr1. MRK Corp Adjusted Trial Balance is below: Accounts Debit Credit Cash $ 25,000 Accounts Receivable 30,000 Prepaid Rent 3,000 Supplies 1,000 Equipment 650,000 Accounts Receivable BB 5,000 50,000 EB Accumulated Depreciation $ 100,000 Accounts Payable 2,000 Salaries Payable 6,000 Interest Payable 3,000 Accounts Payable DR 12,000 CR 5,000 BB Deferred Revenue 7,000 Notes Payable (due in 2-yrs) 175,000 EB Common Stock 150,000 Retained Earnings 200,000 Retained Earnings Dividends 10,000 200,000 BB Service Revenue 350,000 Salaries Expense 224,000 Advertising Expense 5,000 Rent Expense 10,000 Depreciation Expense 20,000 Interest Expense 7,000 Utilities Expense 8,000 Totals EB $ 993,000 $ 993,000 1 Determine Net Income. 2 Determine ending retained earnings. 3 Determine book value of equipment. 4 How many current assets are there? 5 How many current liabilities are there? 6 How many temporary accounts are there? 7 What account do temporary accounts get closed to? 8 What is the balance of temporary accounts after closing entries?