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Problem 1: On November 1, 2021, Machine Gun Kelly Company loaned Baby Face Nelson Company $20,000 and received a 6% interest bearing note with both interest and principal due in one year. Assuming Machine Gun's year ends December 31st, how much interest revenue will Machine Gun Kelly Company report on its year end December 31, 2022 income statement relative to this note?
Group of answer choices
Option 1: $200
Option 2: $600
Option 3: $1,000
Option 4: $1,200
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