On October 1, 2014, Donna Equipment Signed a One-Year, 8

question 20

Multiple Choice

On October 1, 2014, 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, how much interest expense should be reported in the 2015 income statement?

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

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Definitions:

Capital Punishment

The legally authorized killing of someone as punishment for a crime, typically crimes of a severe nature such as murder.

Cognitive Dissonance

The discomfort experienced when holding two or more conflicting cognitions, leading to an alteration in beliefs, attitudes, or behaviors to reduce the discomfort.

An Attribution

The process of explaining one's own behavior or the behavior of others.

Role Playing

A technique or activity in which individuals assume roles and act them out in order to understand different perspectives, or for training and educational purposes.