How much interest will purifier pay on march

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Problem 1: Which of the following items does not qualify as a contingent liability?

Option 1: None of these.
Option 2: Negligently causing harm to another, but a lawsuit has not yet been filed.
Option 3: Being named as a defendant in a lawsuit.
Option 4: Loaning money to another party who may not be able to repay.
Option 5: Unresolved environmental damage claims brought by the government.

Problem 2: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How much interest will Purifier pay on March 1?

Option 1: $80
Option 2: $240
Option 3: None of these.
Option 4: $480
Option 5: $160

Reference no: EM132936469

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