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    vmcfarland's Avatar
    vmcfarland Posts: 1, Reputation: 1
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    #1

    Nov 20, 2008, 01:47 PM
    Long term liabilities
    Does the interest expense paid on bonds lower net income?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 12, 2008, 07:43 PM

    Interest Expense is reported in the Other Income and Expenses section of the Income Statement and does affect Net Income
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
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    #3

    Dec 17, 2008, 03:20 PM

    Wrong, any expense effects your bottom line (i.e. net income). If you're paying interest expense on the bonds you issued, you are reducing your net income.
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