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On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement. What amount of interest expense, if any, would Corso record on December 31, 2019, the company's fiscal year end? I have the answer for the interest expense as of 12/31/19. What would the expense be on 12/31/18 and 12/31/20?
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