Jelly Company is buying a Sandwich Machine from Peanut Butter Company. The original cost on January 1, 20X3 was $40,000. Jelly put 10% down and is making five annual payments each December 31st of $9,016.43 which include interest at 8%. If Jelly is properly amortizing this purchase, the amount of principal paid for 20X4 (second year) is:

Jelly Company is buying a Sandwich Mochine from Peanut Butter Company. The onginal cost on January 1,203 was $40.000. Jelly put 10% dcwn and. is making five annual payments each December 3tst of $9.016.43 which inciude interest ot 8%, if Jelly is properly amortizing this purchase, the omount of principar paid for 204 (second yeat) is