On January 1, 2020, Train, Inc. accepted an $80,000, non-interest bearing 3 year note in exchange for
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2020, Train, Inc. accepted an $80,000, non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three periods, follows:
Present value of 1 | 0.73119 |
Present value of annuity of 1 | 2.44371 |
What amount would Train record as interest income on December 31, 2020?
Question 1 options:
$6,434 | |
$8,800 | |
$2,366 | |
$0 |
Related Book For
Posted Date: