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On September 1, 2019, Maibritt Equipment Signed a 12-Month, 9

Question 58

Multiple Choice

On September 1, 2019, Maibritt Equipment signed a 12-month, 9% interest bearing note payable for $200,000.
Assuming Maibritt maintains its books on a calendar year basis, the amount of interest expense that should be reported in the 2020 income statement for this note would be:


A) $12,000
B) $ 8,000
C) $18,000
D) $ 6,000

Correct Answer:

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