Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a note, agreeing to pay Curvy Company $400,000 for the equipment on December 31, 2021. 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, 2019, 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 2020 interest expense, assuming that the December 31, 2019 adjusting entry was made? Multiple Choice $29,693. $27,435. $32,000 $27,962