On July 1, 2011, Ross-Livermore Industries issued nine-month notes in the amount of $400 million. Interest is

Question:

On July 1, 2011, Ross-Livermore Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity.

Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: