On December 1, 20X6, Sweet Sixteen Company issued a $480,000, 4-month, 4% interest-bearing note payable.

What is the total interest expense that Sweet Sixteen will incur on this note, and what is the note's maturity value?

a.

$19,200 expense; $499,200 maturity value

b.

$1,600 expense, $499,200 maturity value

c.

$6,400 expense, $486,400 maturity value

d.

$4,800 expense; $484,800 maturity value

e. none of the above

Refer to the information above for Sweet Sixteen Company.

What is the amount of interest payable that will be reported for this note on the company's December 31, X6 balance sheet?

	a.	$1,600
	b.	$4,800
	c.	$6,400
	d.	$19,200
	e.	none of the above

Refer to the information above for Sweet Sixteen Company. Assume instead that the note was discounted at 4%.

What amount did Sweet Sixteen receive on December 1, 20X6?

	a.	$460,800
	b.	$473,600
	c.	$480,000
	d.	$486,400
	e.	none of the above