On 1 October 2012 C Purchased a Building for $1

question 6

Multiple Choice

On 1 October 2012 C purchased a building for $1 250 000,paying $250 000 as a deposit and giving the seller a 12% mortgage for the balance.The monthly repayment was $14 000.The entry to record the payment on 1 November 2012 is:

• A)Dr Interest expense $10 000; Dr Mortgage payable $4,000; Cr Bank $14 000
• B)Dr Mortgage payable $14 000; Cr Bank $14 000
• C)Dr Interest expense $10 000; Dr Bank $4,000; Cr Mortgage payable $14 000
• D)Dr Interest expense $14 000; Cr Bank $14 000

---

Definitions:

Might-Equals-Right

A belief or principle that power and strength justify moral superiority or rightful authority.

Self-Serving

Behaviors or attitudes that prioritize an individual's own interests, benefits, or welfare over those of others.

Matched Power

A situation in negotiations or relationships where the power levels of the involved parties are equal, allowing for more balanced and fair outcomes.

Deliberations

The process of carefully considering and discussing various options before making a decision.