Island Corporation owes Mutual Bank a 10% note payable for $100,000 plus $8,000 accrued interest. On October 1, 20X1. Island and Mutual Bank execute an agreement whereby Island will pay Mutual $128,000 on the due date of the note on October 1, 20X3. What will be the Island's carrying value of the restructured note?

Multiple Choice

a. 100,000

b. 108,000

c. 118,000

d. 128,000

Answer rating: 100% (QA)

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