Required information
On January 1st, 2024, Jurassic Pork, a food truck specializing in smoked ribs and pulled pork, is purchasing a new food
truck for its fleet by signing a note payable which includes an interest rate of 7%. The company will choose between the
following two options for the terms of its note payable:
Option 1. Payments of $15,000 at the end of each year for 4 years, starting 12/31/24.
Option 2. A single payment of $66,000 in 4 years.
(PV table, PVA table)
BONUS: What amount of interest expense would Jurassic Pork record on 12/31/25 under option 1? It may be helpful to reference the journal entries you recorded for option 1 when answering this question. (up to
1 bonus point possible)
Note: Enter only the amount. No dollar signs!
Numeric Response