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On September 1, Year 1. West Company borrowed $10,000 from Valley Bank. West agreed to pay interest annually at the rate of 6% per year.

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On September 1, Year 1. West Company borrowed $10,000 from Valley Bank. West agreed to pay interest annually at the rate of 6% per year. The note Issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of Interest expense that will be reported on West's Income statement for Year 1? Multiple Choice $-0- $150 $60 $200

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