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On September 30, 2024, a company acquired a patent. The agreement specified that the company...

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Accounting

On September 30, 2024, a company acquired a patent. The agreement specified that the company will pay $1,060,000 immediately and then another $1,060,000 on September 30, 2026. An interest rate of 7% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1)

What amount of interest expense, if any, would the company record on December 31, 2026, the companys fiscal year end?

$74,200

$66,105

$55,650

$52,009

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