On December 1, 2009, Fisher 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, 2009.

1 How much of the first payment made on December 31, 2009, is allocated to repayment of principal? $________

2 What is the total liability related to this mortgage to be reported in Fishers balance sheet at December 31, 2009? (Do not separate into current and long-term portions.)

$________

3 The portion of the second monthly payment made on January 31, 2010, which represents interest expense is: $________

4 What is the aggregate amount paid by Fisher over the 30year life of the mortgage?

$________

5 Over the 30year life of the mortgage, the total amount Fisher will pay for interest charges is

$________