Company C bought a piece of equipment on January 1, 20X1 by signing the following note payable.

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Use the following information for the next two questions.

 

Company C bought a piece of equipment on January 1, 20X1 by signing the following note payable.

 

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

 

Face value 900,000

Coupon rate 1,90%

Market rate 6.70%

Term 10

What is the amount of interest expense on the December 31, 20X3 income statement?

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