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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a) $52891
b) $0
c) $63469
d) $57000

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