Tangible Capital Assets - test bank U
The first step in answering this question it to create a loan amortization schedule matching the payment due date: Loan amortization schedule – payments due December 31 Date Interest expense Payment Loan reduction Loan balance Jan. 1, 2016 $4,000,000 Dec. 31, 2016 $160,000 (a) $898,508 $738,508 3,261,492 Dec. 31, 2017 130,460 (b) 898,508 ... ................
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