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Business, 14.02.2020 00:04 Yumimiku5989
On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9%. Calculate the amount of interest expense the company would record for its year ending December 31, 20X1 (rounded to the nearest dollar).
a. $40,500.
b. $9,289.
c. $10,125.
d. $8,522.
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On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in tw...
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