Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2016. Straight Industries signed a note, agreeing to pay Curvy Company $450,000 for the equipment on December 31, 2018 The market rate of interest for similar notes was 9%. The present value of $450,000 discounted at 9% for five years is $292, 469. On January 1, 2016, Straight Industries recorded the purchase with a debit to equipment for $292, 469 and a credit to notes payable for $292, 469. How much is the 2017 interest expense, assuming that the December 31, 2016 adjusting entry was made? $40, 500. $28.691 $38, 193. $35.993