How much interest expense would reported


Kieso Company borrowed $710,000 on a 120-day note at 14 percent interest. The money was borrowed for 45 days in 2011 and 75 days in 2012; the note and interest were to be paid upon maturity in 2012. How much interest expense, if any, would be reported in 2011 and in 2012?

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Microeconomics: How much interest expense would reported
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