Problem Set83-Chapter: Liabilities 1. In preparing an amortization table, it is necessary to include A. The original amount of the liability, the amount of periodic payments, and the interest rate B. The original amount of the liability, the amount of periodic payments, and the amount of past payments C. The monthly payment, the total amount of past payments, and the original amount of the liability D. The total amount of past payments, the interest rate, and the amount of periodic payments 2. Temple Corporation purchased a piece of real estate, paying $400,000 cash and financing $700,000 of the purchase price with a 10-year, 15% installment note. The note calls for equal monthly payments that will result in the debt being completely repaid by the end of the tenth year. In this situation A. The aggregate amount of the monthly payments is $700,000 B. Each monthly payment is greater than the amount of interest accruing each month. C. The portion of each payment representing intcrest expense will increase over the 10-ycar period, since principal is being paid off, yet the payment amount does not dearease D. The portion of each monthly payment representing repayment of principal remains the same throughout the 10-year period On Docember 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% year. The first monthly payment is made on December 31, Year l. 3. Refer to the information above. Compute the total amount to be paid by Bradley over the 15-year life of the mortgage A. $200,000. B. $$62,000. C. $432,000 D. $474,000. 4. Refer to the information above. How much of the first payment made on December 31, Year 1, represents interest expense? A. $2.400 B. $400. C. $2,304 D. $2,000. 5 Refer to the information above. The total liability related to this mortgage reported in Bradley's balance sheet at December 31, Year 1, is A. $432,100 B. $199,600. C. $194,923. D. $200,000 6. Refer to the information above. Over the 15-year life of the mortgage, the total amount Bradley will pay for interest charges is: A. $232,000. B. $360,000 C. $200,000. D. $432,060. 7. Refer to the information above. The portion of the second monthly payment made on January 31, Year 2, which represents repayment of principal is: A $400 B. $404 C. $2,400 D. $1,99