1. Your firm has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000. How much of the 3rd payment is interest?
A) $8,051.66
B) $6,130.42
C) $6,207.21
D) $6,851.42
E) $7,447.76
2. In times of falling prices, choosing LIFO over FIFO as an inventory cost method would affect the financial statements as follows:
A) Cost of goods sold will be higher and ending inventory will be lower
B) Cost of goods sold will be lower and ending inventory will be lower
C) Cost of goods sold will be higher and ending inventory will be higher
D) Cost of goods sold will be lower and ending inventory will be higher
E) None of the above