Creative Concepts Co. and Retail Investment, Inc., form a joint venture to purchase and sell high?end real estate to foreign buyers. Creative Concepts contributes $400,000 in capital, and Retail Investment contributes $600,000 in capital. The first year resulted in $2,000,000 in profits. Unless otherwise agreed, joint venturers:

a. share profits and losses by proportion to the amount invested.

b. share profits and losses equally.

c. retain profits with the joint venture until the joint venture is dissolved by at least one member.

d. share profits and losses according to the state's Uniform Joint Venture Act.

d. share profits and losses according to the state's Uniform Joint Venture Act.

Explanation:

Interest expense associated with second payment = $1,745

Explanation:

1st year beginning

Ending balance of note 25,000

1st year end

Cash payment 10,053

Interest expense $25,000×10%

=$2,500

Principal payments

$10,053 -$2,500

=$7,553

Ending balance of note

$25,000- $7,553

=$17,447

2nd year end

Cash payment $10,023

Interest payment

$17,447×10%

=$1,744.7

Principal payment

$10,023-$1,744.7.

=$8,278.3

Ending balance of note

$17,447-$8,278.3

=$9,168.7

Interest expense associated with second payment = $1,745

If interest expense is rounded to nearest cent, then interest expense associated with second payment will be $1,744.7