Wahoo Company receives $378,000 when it issues a $378,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $63,000 on December 31.

What is the amount of interest expense that Wahoo Company records as of December 31, 2022? (Hint: Pay attention to dates.)

Group of answer choices

$27,720

$37,800

$25,200

$35,280