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On January 1,2011,Ace Electronics Borrowed $40,000 on a Five-Year,7% Note

Question 192

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On January 1,2011,Ace Electronics borrowed $40,000 on a five-year,7% note.The loan will be repaid in 5 equal installments of $9,756 each year,beginning on December 31,2011.On its statement of cash flows for the year ended December 31,2011,Ace will show cash paid for interest as ________ activity.


A) $(9,756) ,an operating
B) $(2,800) ,a financing
C) $(9,756) ,a financing
D) $(2,800) ,an operating

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