Question
The Pita Pit borrowed $199,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full
The Pita Pit borrowed $199,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022.
In connection with this note, The Pita Pit should report interest expense at December 31, 2021, in the amount of:(Do not round your intermediate calculations.)
Multiple Choice
- $23,880.
- $0.
- $3,980.
- $11,940.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
