Question
On January 1of Year1,Company purchased a machine with a $6,000 loan.The loan required 5equal payments on December 31ofeach year.The annual interest rate was 6% .The
On January 1of Year1,Company purchased a machine with a $6,000 loan.The loan required 5equal payments on December 31ofeach year.The annual interest rate was 6% .The annual payment (of interest and principle) was $1,425.
In Year2, how much interest expense will Companyreport for this loan?Note, this is the SECOND year of the loan.
a.$1,425
b.$338
c.$296
d.$360
e.$225
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
