Jade larson antiques owes $20,000 on a truck purchased for use in the business. assume the company makes timely principal payments of $5,000 each year at december 31 plus interest at 8%, which of the following is true?

a. just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet.
b. after the first payment, $15,000 would be shown as a long-term liability.
c. after the first payment is made, $5,000 would be shown as the current portion due on the long-term note.
d. after the first payment is made, the company owes $15,000 plus three years' interest.

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year. if the tax rate is 35 percent, what is the annual ocf for the project?