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  1. business
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  3. at january 1, 2021, dier company was indebted to f

At January 1, 2021, Dier Company was indebted to Fernandes Bank under a $700,000, 6%...

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Accounting

At January 1, 2021, Dier Company was indebted to Fernandes Bank under a $700,000, 6% note. The note was signed January 1, 2018, and was due December 31, 2022. Annual interest was last paid on December 31, 2019. Dier was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Fernandes Bank agreed to reduce last year's interest and the remaining two years' interest payments to $34,182.40 each and delay all payments until December 31, 2022, the maturity date. How much interest expense should Dier report approximately for 2022?

Multiple Choice

  • $30,867

  • $33,146

  • $32,902

  • $31,613

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