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On May 1, ABC Corporation invests $90,000 in a 9-month Certificate of Deposit (CD) that...

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Accounting

On May 1, ABC Corporation invests $90,000 in a 9-month Certificate of Deposit (CD) that pays an annual interest rate of 2 percent. The company prepares quarterly financial statements, using the calendar year. If ABC fails to make a quarterly adjusting entry on June 30, by how much will that quarter's income be understated? (Enter a positive number.)

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