On 1 September, 2014, Able Company purchased a building from Regal Corporation by paying $2,000,000 cash and issuing a one-year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 9% and is paid at maturity. In its 31 December 2014, statement of financial position, Able correctly presented the note and interest payable as follows
-How much must Able pay Regal Corporation on 1 September 2015, when the note matures?
A) $6,000,000.
B) $6,180,000.
C) $6,540,000.
D) Some other amount.
Correct Answer:
Verified
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