What is the amount of interest expense

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On August 1, 2006, the Frost Company purchased property from Anderson that had a fair value of $399,271. Frost gave Anderson a $500,000 noninterest-bearing note payable in five equal annual installments of $100,000 with the first payment due July 31, 2007. What is the amount of interest expense that should be recognized by Frost in 2007, using the effective interest method?

Reference no: EM132318472

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