On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis (December 31 as fiscal year end), how much interest expense should be reported in the 2020 income statement? Select one: a. $2,000. b. $4,000. c. $1,000. d. $3,000.
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