Multiple Choice
Franklin Company obtained a $160,000 line of credit from State Bank on January 1,Year 1.The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate.The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table.Assume that Franklin borrows or repays on the first day of each month.
What is the amount of interest expense recognized in March?
A) $232
B) $262
C) $292
D) $408
Correct Answer:
Verified
Correct Answer:
Verified
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