Allen corp.'s liability account balances at june 30, 2011 included a 10% note payable in the amount of $2,400,000. the note is dated october 1, 2009 and is payable in three equal annual payments of $800,000 plus interest. the first interest and principal payment was made on october 1, 2010. in allen's june 30, 2011 balance sheet, what amount should be reported as accrued interest payable for this note? a. $180,000.b. $120,000.c. $60,000.d. $40,000.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?