On February 1, 2025, Yosemite Corp loaned $187,825 to Cascad…
On February 1, 2025, Yosemite Corp loaned $187,825 to Cascade Corp. The 3-year zero-interest-bearing note (face amount, $250,000) was exchanged solely for cash. The prevailing market rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of Interest Expense should be recorded by Cascade at the end of 2025?