On January 1, 2017, Coté Limited issues a $27,232, 5% 3-year note payable

Accounting Oct 21, 2020

On January 1, 2017, Coté Limited issues a $27,232, 5% 3-year note payable. The note calls for three annual payments of $10,000, blended principal and interest. The first payment is to be made on December 31, 2017. On December 31, 2018, Coté will report interest expense of

A) $1,000.

B ) $1,362.

C) $930.

D) $10,000.

Expert Solution

Correct option is C). $930

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