On January 1, Year 3, Orr Company bought a building with an assessed value of $220,000 on the date of purchase. There was no established exchange price for the building. However, Orr could either choose to give as consideration a $400,000 noninterest-bearing note due on January 1, Year 6, or give a 3 year, $250,000 note bearing 6% interest paid annually. The interest-bearing note requires one principal payment at the end of the note’s term plus periodic interest payments during the note’s term. The effective interest rate is 8%. What would be the change in interest expense on Orr’s Year 3 income statement if Orr chooses to give the interest-bearing note instead of the noninterest-bearing note?

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.