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On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for $110,000 at 15%. The note will be paid in equal annual installments of $29,066, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number.) O A. S16,500 O B. $97,434 O C. $12,447 O D. S29,066

On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for $110,000 at 15%. The note will be paid in equal annual installments of $29,066, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number.) O A. S16,500 O B. $97,434 O C. $12,447 O D. S29,066

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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On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgage note for $110,000 at 15%. The note will be paid in equal annual installments of $29,066, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number) O A. S16,500 O B. S97,434 O C. $12,447 O D. $29,066
Transcribed Image Text:On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgage note for $110,000 at 15%. The note will be paid in equal annual installments of $29,066, beginning January 1, 2019. Calculate the portion of interest expense paid on the third installment. (Round your answer to the nearest whole number) O A. S16,500 O B. S97,434 O C. $12,447 O D. $29,066
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