Fornelli Corporation borrowed $800,000 from Central Bank on May 31, 2019.The three-year, 7% note required annual payments of $304,840 beginning May 31, 2020.Interest expense for the year ended December 31, 2019, was

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Interest expense for the year ended December 31, 2019, is calculated as follows:Interest expense = Principal x Interest rate x TimeInterest expense = $800,000 x 7% x 7/12Interest expense = $32,667

Fornelli Corporation Borrowed $800,000 from Central Bank on May 31