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On October 1, 2016, ABC company took out a short-term loan of a $100,000 to be repaid in 9 months. The annual interest rate is

On October 1, 2016, ABC company took out a short-term loan of a $100,000 to be repaid in 9 months. The annual interest rate is 6% with no interest payments due until the loan is repaid. How much interest should ABC company accrue by year-end December 31, 2016? How should it be recorded in the Financial Statements?

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