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On March 1 , Year 1 , a company borrows $ 5 0 , 0 0 0 by signing a two - year note. The

On March 1, Year 1, a company borrows $50,000 by signing a two-year note. The note has a 6% annual interest rate and matures on March 1, Year 3. Interest and princi are paid in cash on the maturity date.
What amount of interest expense would the company report in Year 2?
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