On January $1,$ Year $1,$ Echols Company borrowed $$100,000$ cash from Sun Bank by issuing a $5-$year, $8\%$ term note. The principal and interest are repaid by making annual payments

beginning on December $31,$ Year $1.$ The annual payment on the loan equals $$25,045\mathrm{.}65.$

Which of the following shows how the borrowing of cash from Sun Bank on January $1,$ Year $1,$ affects the financial statements?

Multiple Choice

Option A

Option B

Option C