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Knott Corporation borrowed $ 9 9 , 0 0 0 from Hamilton Bank on August 1 of the current year, signing a nine - month

Knott Corporation borrowed $99,000 from Hamilton Bank on August 1 of the current year, signing a nine-month not payable with 4% interest to be paid at the conclusion of the note when the principal is repaid. If Knott prepares annual financial statements at December 31, what amount of interest expense will Knott report on its income statement for the current year?

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