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LR Corporation is a cash basis business. LR signed a six - month, 1 2 % note payable of $ 1 0 , 0 0

LR Corporation is a cash basis business. LR signed a six-month, 12% note payable of $10,000 on October 1,2022. By recording the interest expense related to the note only when it is paid on April 1,2023, LR will understate expenses by ________ on its year-end financial statements on December 31,2022.
$300
$600
$0
$11,200

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