On January 1, 2017, Ann Price loaned $233984 to Joe Kiger. A zero-interest-bearing note (face amount, $320000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 11%. The present value of $320000 at 11% for three years is $233984. What amount of interest income should Ms. Price recognize in 2017?

a. $25738.

b. $105600.

c. $35200.

d. $86950.

Answer rating: 100% (QA)

Option a 25738 Interest ... View the full answer