1.Smith Inc. purchased a piece of equipment for $900,000 on June 1, 2019 paying $80,000 in down...
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Question:
1.Smith Inc. purchased a piece of equipment for $900,000 on June 1, 2019 paying $80,000 in down payment and signing a note for the rest of the amount. Smith has agreed to make twenty equal quarterly payments for five years beginning September 1, 2019. The interest rate on this loan is 10%.
Instructions
a.On December 31, 2020, what should be the balance in Smith Inc.'s interest payable related to this note?
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