On October 1, 2019, Donna Equipment signed a one-year, 10% interest-bearing note payable for $48,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2020 income statement?

Multiple Choice

• $3,600.

• $4,800.

• $2,400.

• $1,200.

Answer rating: 100% (QA)

Answer 3600 Principa... View the full answer