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Montreal Express Inc. (MEI) purchased a waste management system on September 20, 20X7 and paid for the purchased by issuing a $100,000, 0% note payable
Montreal Express Inc. (MEI) purchased a waste management system on September 20, 20X7 and paid for the purchased by issuing a $100,000, 0% note payable to the supplier due on September 20, 20X8. The market rate of interest for borrowing of this nature is 5%. What will be the amount charged to interest expense for MEI's year-ended December 31, 20X7 pertaining to this note payable?
$1,331
$1,344
$1,397
$1411
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