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On October 1, 2016, Donna Equipment signed a one-year, 7% interest-bearing note payable for $58,000. Assuming that Donna Equipment maintains its books on a calendar
On October 1, 2016, Donna Equipment signed a one-year, 7% interest-bearing note payable for $58,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2017 income statement?
$2,030.
$1,015.
$4,060.
$3,045.
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