Use the Following Information for Questions *103 Through *105

question 15

Multiple Choice

Use the following information for questions *103 through *105:
On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $1,800,000 note with $180,000 accrued interest payable to Piper, Inc. Piper agrees to accept from Nolte equipment that has a fair value of $870,000, an original cost of $1,440,000, and accumulated depreciation of $690,000. Piper also forgives the accrued interest, extends the maturity date to December 31, 2015, reduces the face amount of the note to $750,000, and reduces the interest rate to 6%, with interest payable at the end of each year.
-Nolte should record interest expense for 2015 of

• A) $0.
• B) $45,000.
• C) $90,000.
• D) $135,000.

---

Definitions:

Sociological Concepts

Ideas and theories formulated to understand and explain various aspects of society and social behavior.

George Herbert Mead

An American sociologist known for his theory of the social self, which explains how an individual’s personality develops in the context of social processes.

Calorie Intake

The total amount of calories consumed by an individual through eating and drinking, which is vital for determining energy balance and nutritional health.

Ad Campaign

A series of marketing efforts, utilizing one or more media channels, designed to achieve specific objectives, such as increasing brand awareness or sales.