On October 1, year 1, Kobe, Inc. borrowed $42,000 cash from the local bank. The loan had a one-year term and a 6% annual interest rate. 1. What is the amount of interest expense that Kobe will recognize on its year 1 financial statements? 2. What is the amount of interest expense that Kobe will recognize on its year 2 financial statements? 3. Based solely on this transaction, what is Kobe's cash flow from operating activities in years 1 and 2? Short Answer Toolbar navigation BI V S 1 Ili