Answer:
The amount of interest that is recognized for the period from April 1 to December 31 is $15,750
Explanation:
According to the given data we have the following:
interest=12%
From April 1 to December 31 we have 9 months
Sodium Inc. borrowed $175,000
Therefore, in order to calculate the amount of interest that is recognized for the period from April 1 to December 31 we would have to make the following calculation:
Interest for 9 months= $175,000 x 12% x 9 months / 12
Interest for 9 months=$15,750
The amount of interest that is recognized for the period from April 1 to December 31 is $15,750
