Solved

On April 1,2010,a Firm Borrowed $100,000 on a 6% Note

Question 68

Multiple Choice

On April 1,2010,a firm borrowed $100,000 on a 6% note.The note is due on April 1,2011.No interest is to be paid until then.What amount of interest expense should it report in its income statement for December 31,2010?


A) $0
B) $1,500
C) $4,500
D) $6,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents