On January 1, 20X1, Washable Rug Company purchased a piece of equipment by signing a note with a below market rate of interest The facts of the transaction are shown below Note payable $ 300,000 Note term 5 Coupon rate 3 00 Market rate 10 379 The note is due in equal annual payments of principle and interest What is the interest expense for the year ending December 31, 20X1

Question: On January 1, 20X1, Washable Rug Company purchased a piece of equipment by signing a note with a below market rate of interest. The facts

On January 1, 20X1, Washable Rug Company purchased a piece of equipment by signing a note with a below market rate of interest. The facts of the transaction are shown below.

Note payable	$ 300,000
Note term	5
Coupon rate	3.00%
Market rate	10.379%

The note is due in equal annual payments of principle and interest.

What is the interest expense for the year ending December 31, 20X1?

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