What is the maximum amount of interest expenditures


A government has $3,000,000 of 6%, 10-year general obligation bonds outstanding. The bonds were issued on July 2, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on January 1 and July 1. What is the maximum amount of interest expenditures that the government would be permitted to report on the bonds for 20X7?

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Accounting Basics: What is the maximum amount of interest expenditures
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