On October 1, 2014, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2015 income statement?
A) $1,000.
B) $2,000.
C)$3,000.
D)$4,000.

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The Answer of On October 1, 2014, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2015 income statement?
A) $1,000.
B) $2,000.
C)$3,000.
D)$4,000.

On October 1, 2014, Donna Equipment Signed a One-Year, 8