On February 1, 2015, Willmar Corporation borrowed $100,000 from its bank by signing a 12 percent, 15-year note payable. The note calls for 180 monthly payments of $1,200. Each payment includes an interest and a principal component.
a. Compute the interest expense in February.
b. Compute the portion of Willmar's March 31, 2015, $1,200 payment that will be applied to the principal of the note.
c. Compute the carrying value of the note on April 30, 2015 (round to the nearest dollar).