LLC company purchased equipment on July 1, 2010, and gave a four month, 6% note with a face value of $40,000. How much interest expense will be recognized on the income statement for the year ended December 31, 2010? What affect does the repayment of the note plus interest have on the statement of cash flow's for 2010? Round the interest expense to the nearest dollar.

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There are three choices for the last two boxes of this assignment they are as follows:

1) a financing

2) An investing

3) And operating