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ABC Corporation purchased a building for $500,000, paying $100,000 in cash and obtaining a mortgage for the remaining balance. The mortgage has a term of
ABC Corporation purchased a building for $500,000, paying $100,000 in cash and obtaining a mortgage for the remaining balance. The mortgage has a term of 15 years with monthly payments. Requirements: a. Determine the amount of mortgage payable. b. Calculate the monthly mortgage payment. c. Prepare the journal entry to record the purchase of the building. d. Determine the total interest paid over the term of the mortgage.
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