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On October 1,20A,Ethan Company Borrowed $10,000 on a 4-Month Note

Question 14

Multiple Choice

On October 1,20A,Ethan Company borrowed $10,000 on a 4-month note with an annual interest rate of 9 percent.How much interest expense should be reported for 20A,assuming that the note is paid on time and Ethan Company's accounting year coincides with the calendar year?


A) $-0-.
B) $225.
C) $300.
D) $900.

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