On June 1, 2022, Iconic Properties obtained a loan in the amount of $120,000 with an interest rate of 12%.  All interest and principal are due May 31, 2023.  How much interest expense will be reported on the 2022 and 2023 income statement?  What is the total liability, if any, on the balance sheet as of December 31, 2022?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
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On June 1, 2022, Iconic Properties obtained a loan in the amount of $120,000 with an interest rate of 12%.  All interest and principal are due May 31, 2023.  How much interest expense will be reported on the 2022 and 2023 income statement?  What is the total liability, if any, on the balance sheet as of December 31, 2022? 

 
 
 
 
 
 
 
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