Dusty Company recently rendered services to Chaps Inc. in exchange for a 2%, 4-year promissory note having
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Dusty Company recently rendered services to Chaps Inc. in exchange for a 2%, 4-year promissory note having a face value of $50,000 (interest payable annually). Dusty Co. recently had to pay 6% interest on a new loan from the bank. Chaps Inc. has a credit rating that requires the company to borrow at 9%. What amount should Dusty record as services revenue?
$50,000
$43,070
$35,421
$38,661
None of these are correct
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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