1. 18) Cash dividends and liquidated dividends are similar in that both do not change total stockholders equity. (True/False)
2. 19) State unemployment insurance paid should be included in an employers payroll tax expense. (True/False)
3. 20) A pending court case with a probable unfavorable outcome is an example of a contingent liability which should be disclosed on the balance sheet and does require footnote disclosure. (True/False)

1. 21) On June 1, 2021, Gray Company issued a note payable to Fidelity Bank in the amount of $4,800,000, bearing interest at 10%, and payable in four equal annual principal payments of $1,200,000. The first payment for interest and principal was made on June 1, 2022. At December 31, 2022, Gray should record accrued interest payable of?