Universal Travel, Incorporated borrowed $508,000 on November 1, Year 1, and signed a twelve-month note...

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Accounting

Universal Travel, Incorporated borrowed $508,000 on November 1, Year 1, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, Year 2. What is the amount of interest payable that should be reported by Universal Travel, Incorporated on December 31, Year 2?
Multiple Choice
$8,480
$30,480
$5,080
$0

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