Values Given:
Rate of interest = 6%
Borrowed Amount = $100,000
Date of borrowing = May 01 , 2017
Year ending = December 31, 2017
Period of interest = May 01 - Dec 31 = 8 months
Calculation of interest amount to be shown in income statement of innovate company for the year ending Dec 31, 2017 :
Interest Amount = Borrowed Amount * Rate of interest * period of interest
= $100,000 * 6% * 8/12
= $ 6000 * 8/12
= $4,000
Therefore the Correct option = C.$4,000
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