Explanation:
The correct calculation for ending interest payable is derived as follows:
Ending Interest Payable=Beginning Interest Payable+Interest Expense−Cash Interest Paid
Substituting the given values:
Ending Interest Payable=€45,000+€50,000−€15,000=€80,000
- Option A is incorrect because it does not account for the interest expense.
- Option C is incorrect because it fails to deduct the cash interest paid.
This question tests the linkage between the balance sheet (interest payable) and the cash flow statement (cash interest paid).
