Question: Frame Co. has an 8% note receivable dated June 30, 2009, in the original amount of $150,000. Payments of $50,000 in principal plus accrued interest

Frame Co. has an 8% note receivable dated June 30, 2009, in the original amount of $150,000. Payments of

$50,000 in principal plus accrued interest are due annually on July 1, 2010, 2011, and 2012. In its June 30, 2011 balance sheet, what amount should Frame report as a current asset for interest on the note receivable?

a. $0

b. $ 4,000

c. $ 8,000

d. $12,000

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