On October 1, 2014, Donna Equipment signed a one-year, 6% interest-bearing note payable for $46,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2015 income statement?

A. $690.
B. $1,380.
C. $2,760.
D. $2,070.

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.