Final answer:
The interest expense for one year on Sheldon's $15,000 liability at a 10% interest rate is calculated as $15,000 x 0.10 x 1, which equals $1,500. Thus, the correct answer is option (a) $1,500.
Step-by-step explanation:
Calculating Interest Expense
Sheldon has a $15,000 liability for a machine that carries an interest rate of 10%. To calculate the interest expense for one year, you use the simple interest formula, which is: Interest = Principal x Rate x Time. In this case, the principal is $15,000, the rate is 10% (or 0.10 in decimal form), and the time is 1 year.
Interest Expense = $15,000 x 0.10 x 1 = $1,500.
Therefore, the correct answer to the question 'Sheldon has a $15,000 liability for a machine that has an interest rate of 10%. The interest expense for one year is?' is option (a) $1,500.