On January 1, 2024, Wildhorse Company issued for cash a $570000, 5-year note bearing annual interest at 10% to Wilson, Inc. The market rate of interest for a note of similar risk is 12%. What interest expense would be recorded on December 31, 2024? a) $52891 b) $0 c) $63469 d) $57000
On January 1, 2024, Wildhorse Company issued for cash a $570000, 5-year note bearing annual interest at 10% to Wilson, Inc. The market rate of interest for a note of similar risk is 12%. What interest expense would be recorded on December 31, 2024? a) $52891 b) $0 c) $63469 d) $57000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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On January 1, 2024, Wildhorse Company issued for cash a $570000, 5-year note bearing annual interest at 10% to Wilson, Inc. The market rate of interest for a note of similar risk is 12%. What interest expense would be recorded on December 31, 2024?
a) $52891
b) $0
c) $63469
d) $57000
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