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You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31,2024 Your accounting group provided you the following information on the compony's debt 1. On July 1,2024, Moonlight Bay issued bonds with a face amount of $2,500,000. The bonds mature in 20 yeais and interest of 11% is payable semiannually on June 30 arid December 31 . The bonds were issued at a price to yeld investors 12%. Moonlight Bay records interest at the effoctivo rate. 2. At December 31. 2023. Moonlight Bay had o 10%5 instaliment note payable to Third Mercentile Bank with a balarce of $590000 The anerual payment is $105,000, payable each June 30 . 3. On January 1, 2024, Moonlaght Bay leased a building under a finance lease calling for four annual lease payments of $70,000 beginning January 1, 2024 Moonlight Bay's incremental borrowing rote on the date of the lease was 12% and the lessor's implicit rate. which was konown by Moonlight Bay, was 11% Required: Calculate interest experse for the year ended December 31, 2024 Note: Round your answer to nearest whole dollat
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