I can\'t figure it out. Unfortunately, we didn\'t cover this concept in this cla

Question

I can't figure it out. Unfortunately, we didn't cover this concept in this class.

ect.mheducation.com/flow/connect.htmil 120% 0 Saved Help Save & Exit Submit On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1.000,000 immediately and then another $1,000,000 on September 30, 2020 An interest rate of 8% reflects the time value of money forthis type of oon agreement What amount of interest expense, if any, would Corso record on December 31, 2018, the company's fiscal year end? Multiple Choice $17147 $20,000. $68,687 $80,000 Bxev 4 of 50 ill Next

Explanation / Answer

Calculation of interest;

No.of months- 3 months

Principal ; 1000000

INT rate: 8%

INT amount =1000000*8%*3/12

=20000

Select option B

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