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Blossom Service Company borrowed $700000 from Sheridan County Bank on January 1, 2024 in order to expand its data mining capabilities. The 5-year note required annual payments of $182305 and carried an annual interest rate of 9.5%. What is the amount of expense Blossom must recognize on its 2025 income statement? O $55499. O $43450. O $66500. O $49179.

Blossom Service Company borrowed $700000 from Sheridan County Bank on January 1, 2024 in order to expand its data mining capabilities. The 5-year note required annual payments of $182305 and carried an annual interest rate of 9.5%. What is the amount of expense Blossom must recognize on its 2025 income statement? O $55499. O $43450. O $66500. O $49179.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Service Company borrowed $700000 from Sheridan County Bank on January 1, 2024 in order to expand its data mining capabilities. The 5-year note required annual payments of $182305 and carried an annual interest rate of 9.5%. What is the amount of expense Blossom must recognize on its 2025 income statement? O $55499. O $43450. O $66500. ○ $49179.
Transcribed Image Text:Blossom Service Company borrowed $700000 from Sheridan County Bank on January 1, 2024 in order to expand its data mining capabilities. The 5-year note required annual payments of $182305 and carried an annual interest rate of 9.5%. What is the amount of expense Blossom must recognize on its 2025 income statement? O $55499. O $43450. O $66500. ○ $49179.
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