I purchased a new car on April 1st for $50,000. I paid $10,000 cash as a down payment; and, I financed the remainder with the credit union at 3% interest. I will make 60 monthly payments, with the first payment due on May 1st. How much interest will I pay with the 2 nd payment, which is due on June 1 ? Round to the nearest dollar. A company purchased equipment paying $50,000 cash on the purchase date and agreeing to pay $10,000 every year over the next four years. The first payment is due one year after the purchase date. Abel's borrowing rate is 8%. The equipment balance reported on the balance sheet as of the purchase date is closest to: During 2021, a company incurred operating expenses amounting to $100,000, of which $75,000 was paid in cash; the balance will be paid during 2022. Which of the following is correct for the 2021 year-end balance sheet? Net income will decrease by $100,000; retained earnings will decrease by $75,000; cash will decrease by $75,000. Stockholders' equity decreases $75,000 and assets decrease $75,000. Assets decrease $100,000 and stockholders' equity decreases $100,000. Assets decrease $100,000, liabilities increase $25,000, and stockholders' equity decreases $100,000. Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities increase $25,000. A company purchased a piece of equipment costing $125,000 and is depreciating it assuming a 10-year life. The residual value was originally expected to be $10,000. At the end of the fifth year, the motor was replaced (a major overhaul) at a cost of $40,000. The overhaul increased the efficiency of the equipment. How much is depreciation expense in the sixth year assuming straightline depreciation, no change in estimated useful life and no change in residual value? \begin{tabular}{r} 19,500 \\ 11,500 \\ \hline 21,500 \\ 18,500 \end{tabular} None of the above