Riley Company borrowed $50,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,160 in Year 1 and $1,800 in Year 2. Assume no other transactions. The amount of net income on the Year 2 income statement would be: Multiple Choice $925 $875 $(50) $2,675 Victor Company issued bonds with a $875,000 face value and a 6% stated rate of interest on January 1, Year 1. The bonds carried a 5-year term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. The amount of interest expense appearing on the December 31, Year 3 income statement would be: Multiple Choice $61,250 $52,500. $49,875 $43,750