Multiple Choice
On October 1, 2016, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2017 income statement?
A) $1,000.
B) $2,000.
C) $3,000.
D) $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
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