Straight Industries purchased a large piece of

equipment from Curvy Company on January $1,$

Straight Industries signed a note, agreeing

to pay Curvy Company $$400,000$ for the

equipment on December $31,2025.$ The market

rate of interest for similar notes was $8\%.$ The

present value of $$400,000$ discounted at $8\%$ for

three years was $$317,532.$ On January $1,2023,$

Straight Industries recorded the purchase with a

debit to equipment for $$317,532$ and a credit to

notes payable for $$317,532.$

How much is the interest expense for the year

$2024,$ assuming that the December $31,2023$

adjusting entry was made?

$$29,693.$

$$27,962.$

$$32,000.$

$$27,435.$

None of the above