What mortgage would be closest to


On August 1, 2006, ABC Company borrowed $400,000 to finance the purchase of a building. The terms of the mortgage require payments of $2,100 to be made at the end of every month with the first payment being due on August 31, 2006. The length of the mortgage is thirty years, and the mortgage carries an annual interest rate of 5%. The amount of interest expense that ABC Company would report in its 2006 income statement related to this mortgage would be closest to:

 

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Accounting Basics: What mortgage would be closest to
Reference No:- TGS040221

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