Alden Trucking Company Is Replacing Part of Its Fleet of Trucks

question 52

Multiple Choice

Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1,2019.Alden financed $37,908,000,and the note agreement will require $10 million in annual payments starting on December 31,2019 and continuing for a total of four more years (final payment December 31,2023) .Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually.
- Upon the first payment of the note on December 31,2019,the amount of interest expense to be recorded is:

• A)$1,000,000.
• B)$2,790,800.
• C)$3,790,800.
• D)$4,000,000.

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Audience and purpose involve identifying the intended recipients of a piece of communication and the reason or objective behind delivering the message.

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