On January 1, 2015, Bratios Company Purchases Equipment and Signs

question 129

Multiple Choice

On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. Calculate the portion of interest expense paid on the third installment.

• A)$21,139
• B)$9,053
• C)$12,000
• D)$70,861

---

Definitions:

Rete Testis

A network of tubules located in the testes that transport sperm from the seminiferous tubules to the efferent ducts.

Efferent Ductules

Tiny ducts leading away from the testicle that transport sperm from the rete testis to the epididymis.

Sustentacular Cells

Support cells found in various organs and tissues, providing physical support, nourishment, and regulation of cell environments.

Testosterone

A steroid hormone primarily produced in men by the testes and in women by the ovaries, responsible for the development of male secondary sexual characteristics.