Final answer:
The figures 16000 and 2040 in relation to working interest expense likely refer to the principal amount of a debt and the interest calculated over a certain period. To determine interest expense, the formula used is Interest Expense = Principal Amount x Interest Rate x Time. Additional context is needed to provide an accurate explanation of where these specific figures come from.
Step-by-step explanation:
When a student asks where the numbers 16000 and 2040 come from in the working interest expense, they are typically referring to a financial accounting problem related to the calculation of interest expense on a company's income statement or a question dealing with debt financing. It's important to understand that in the context of finance and accounting, the interest expense is a figure that represents the cost incurred by an entity for borrowed funds. Interest expense is determined by the interest rate applied to the principal amount of the debt.
Now, without additional context, it's difficult to specify exactly where the 16000 and 2040 figures come from. In general, these numbers could potentially represent the principal amount of the debt (16000) and the interest accrued over a specific period of time (2040), which is usually calculated by the formula: Interest Expense = Principal Amount x Interest Rate x Time.
If these figures are part of a homework problem, they might be given in the question or could have been calculated using other provided information such as the terms of a loan or bond issue. For example, if a company has a debt with a principal of 16000 and an annual interest rate of 12.75%, and the interest is being calculated for one year, the interest expense for that period would be 16000 x 0.1275 = 2040. This calculation assumes simple interest and does not take into account any compounding that might occur.
Keep in mind that in financial reporting, the calculation of interest expense may also involve considerations related to amortization of bond premiums or discounts, which could affect the reported interest expense figure. However, these details would be provided in the context of the question or the specifics of the financial scenario being analyzed. To fully answer your question, additional context would be necessary to determine how the figures 16000 and 2040 are derived.