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On January 1, 2021, Thurman Co. borrowed 10%, 3,000,000, five-year loan from National Bank. Interests are payable annually starting December 31, 2021. National charges 5% non-refundable loan origination fee representing service fee. Required:
Problem 1: Determine the following
a. Carrying amount of the loan payable on January 1, 2021.b. Carrying amount of the loan payable on December 31, 2021.c. Total interest expense for the year ended December 31, 2021.
Financial Statement Analysis and Preparation
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