On January 1, 2018, Crane Company sold the property to Wildhorse Co which originally cost Crane $2740000
Question:
On January 1, 2018, Crane Company sold the property to Wildhorse Co which originally cost Crane $2740000 There was no established exchange price for this property Wildhorse gave Crane a $4230000 zero-interest bearing note payable in three equal annual installments of $1410000 with the first payment due December 31, 2018, The note has no ready market The prevailing rate of interest for a note of this type is 10. The present value of a $4230000 note payable in three equal annual installments of $$3194160 at January 1, 2018, What should be the balance of the Discount on Notes Payable account on the books of Wildhorse at December 31, 2018 after adjusting entries are made, assuming that the effective-interest method is used?
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni