A company reported interest expense of $540,000 for the year. Interest payable was $35,000 and $75,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?
A) $580,000.
B) $615,000.
C) $500,000.
D) $575,000.

Question

Quizplus · Accepted Answer

$$\begin{array} { | l | r | r | } 
\hline \text { Iriterest expense } & 540,000 & \
\hline \text { Interest payable } & & 40,000 \
\hline \text { Cash } & & 500,000 \
\hline
\end{array}$$

A Company Reported Interest Expense of $540,000 for the Year