Use the Following Information for Questions 44-46

question 90

Multiple Choice

Use the following information for questions 44-46.
On December 31, 2020, Diaz Corp. is in financial difficulty and cannot pay a $ 900,000 note with $ 90,000 accrued interest payable to Cameron Ltd., which is now due. Cameron agrees to accept from Diaz equipment that has a fair value of $ 435,000, an original cost of $ 720,000, and accumulated depreciation of $ 345,000. Cameron also forgives the accrued interest, extends the maturity date to December 31, 2022, reduces the face amount of the note to $ 375,000, and reduces the market interest rate of 6%, with interest payable at the end of each year.
-Diaz should record interest expense for 2020 of

• A) $ 0.
• B) $ 22,500.
• C) $ 45,000.
• D) $ 67,500.

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Definitions:

Situational Approach

a leadership theory that suggests effective leadership depends on the specific situation, including the task, the leader's style, and the team's characteristics.

Leadership Training

Programs or activities designed to develop skills and competencies in individuals to enable them to lead effectively.

Developmental Levels

The distinct stages or phases that individuals go through as they progress and grow in various domains such as physical, cognitive, or emotional development.

SLII Model

A situational leadership model developed by Paul Hersey and Ken Blanchard that proposes four leadership styles adaptable based on the follower's maturity level and task readiness.