Your Corporation bought $450, 000 of equipment using an installment loan 1/1/20.  The note provides for 4.5 % annual interest and equal annual payments of interest and principal of $91,395.50 on December 31 of each year.  What is the amount of principal reduction related to the YEAR 2 payment?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...
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Your Corporation bought $450, 000 of equipment using an installment loan 1/1/20.  The note provides for 4.5 % annual interest and equal annual payments of interest and principal of $91,395.50 on December 31 of each year.  What is the amount of principal reduction related to the YEAR 2 payment? 
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