Question: On July 1 , 2 0 2 4 , a company acquired equipment. The company paid $ 1 6 8 , 0 0 0 in

On July 1,2024, a company acquired equipment. The company paid $168,000 in cash on July 1,2024, and signed a $648,000 noninterest-bearing note for the remaining balance which is due on July 1,2025. An interest rate of 5% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1)
What amount of interest expense will be reported for its year ended December 31,2024?
Multiple Choice
$15,429
$30,857
$32,400
$16,200

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