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DTI obtained a $50,000 line of credit from the bank on January 1 Year 1 DTI agreed to accept a variable interest rate that was

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DTI obtained a $50,000 line of credit from the bank on January 1 Year 1 DTI agreed to accept a variable interest rate that was set at 2 above the bank's prime lending rate. The bank's prime rate interest and the amounts borrowed or repaid during the first three months of Year I are shown in the following table. Assume that I borrows or repays on the first day of each month. Borrowing is shown as a positive amount and repayments are shown as negative amounts indicated by parentheses Mouth January February March Amount Borrowed (Repaid) 525.000 S(20,000) $5,000 Prime Rate 496 616 596 Based on this information alone, the amount of interest expense (rounded to the nearest St) recognized in March would be Multiple Choice OS292 O $58 O $29 o $217 O 542

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