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Collins Company Borrowed $750,000 from BankTwo on January 1, 2013

question 126

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Collins Company borrowed $750,000 from BankTwo on January 1, 2013 in order to expand its mining capabilities. The five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. What is the amount of expense Collins must recognize on its 2014 income statement?


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Long-Arm Statute

A state statute that permits a state to obtain jurisdiction over nonresidents. The nonresidents must have certain "minimum contacts" with that state for the statute to apply.

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A specific physical location defined by natural or artificial boundaries.

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pertains to the authority of federal courts to hear cases that involve the interpretation and application of the U.S. Constitution, federal laws, or treaties.

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