Every question worked makes you a better student and closer to passing the CPA Exam. The question asks for the interest expense Hogan should report on its Year Two income statement, and the answer is $6,800. LaBrend Corporation uses a special purpose financial reporting framework, and the report should have an emphasis-of-matter paragraph to indicate the basis used was not consistent with US GAAP. Hyldina can deduct $800 on its Year One income tax return for the $10,000 account receivable from Prosgko that it believes has an 8% chance of being collected. The average age of Glacken's $435,000 accounts receivable balance is 53 days.