Magenta Company purchased a machine from Pink Corporation on October 31, 2021. In payment for the $320,000 purchase, Magenta issued a one-year installment note to be paid in equal monthly payments of $28,432 at the end of each month. The payments include interest at the rate of 12%. The amount of interest expense that Magenta will report in its income statement for the year ended December 31, 2021, is:

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Multiple Choice

$3,200.

$6,148.

$6,400.

$2,843.