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Samuels Corporation Issued a $40,000, 3-Year, Non-Interest-Bearing Note Payable on January

Question 108

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Samuels Corporation issued a $40,000, 3-year, non-interest-bearing note payable on January 1, 2009. Reflecting a market rate of interest of 10%, Garrison received $30,053. Calculate interest expense (to the nearest dollar) for 2009 and 2010.

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2009: $30,053 x .10 ...

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