On January 1, Year 1, the Mahoney Company borrowed $168,000…

On January 1, Year 1, the Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan based on the present value of annuity factor would be $42,077. The amount of principal repayment included in the December 31, Year 1 payment is:

Currie Company borrowed $24,000 from the Sierra Bank by issu…

Currie Company borrowed $24,000 from the Sierra Bank by issuing a 9% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $9,482. Based on this information, the amount of the interest expense associated with the second payment would be: