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In December 31, Year 1, Delta borrows (receives) $50 million in cash from the bank. The principal repayment ($50 million) will occur in Year 3,
In December 31, Year 1, Delta borrows (receives) $50 million in cash from the bank. The principal repayment ($50 million) will occur in Year 3, and interest of $1.0 million will be paid in Year 2 and Year 3. (You may assume that $50 million is the present value of the total principal and interest that Delta will end up paying.) How much of a liability will Delta record on December 31, Year 1, related to the borrowing
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