Question

Oklahoma Oil Corp. paid interest of $793,000 during 2018, and the interest payable account decreased by $124,000. What was interest expense for the year? Multiple Choice $545,000. $669,000. $793,000. $917,000.

Answer 1

The interest expense for the year is $669,000.

Explanation:

Oklahoma Oil Corp. paid interest of $793,000 during 2018.

The interest payable account decreased by $124,000.

Total interest expense = interest paid - decrease in payable

=
`793000-124000=669000`

Therefore, the interest expense for the year is $669,000.