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VICTONE e TV owing is needed in order to find the present Value UI alongaLION The discount rate of the associated cash flows

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Answer #1

Answer : Effective interest rate x book value

as

As per GAAP interest expense is preferable calculated as the effective interest rate on the carrying value of the liability hence the formula for interest expense is

Interest expense = effective interest rate x book value

Stated rate of interest is calculated on book value to calculate the amount of interest to be paid

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