Interest Expense for 2016 is $300,000.Interest Payable increased $50,000 during the year.Interest Receivable increased $10,000 during the year.Interest Expense includes $50,000 for the amortization of discount.What is the cash paid for interest?
A)$200,000
B)$250,000
C)$300,000
D)$350,000

Question

Quizplus · Accepted Answer

Interest Expense = Interest Paid + Amortization of Discount$300,000 = Interest Paid + $50,000Interest Paid = $250,000

Interest Expense for 2016 Is $300,000