Express Jet Loan Interest Expense Calculation
Loan Details
- Express Jet borrows: $100 million
- Loan date: October 1, 2021
- Interest rate: 6%
- Duration: 1 year
Interest Expense Calculation
- Total interest for one year = Principal × Rate
- Total interest = 100,000,000imes0.06=6,000,000
Reporting Period
- Year ended: December 31, 2022
- Interest expense recognized within this period: 6,000,000
Correct Answer
- Express Jet reports interest expense: $6 million