Question: On January 1 , 2 0 2 4 , Elizabeth Davis loaned $ 1 8 5 5 7 5 to William Wilson. A zero -

On January 1,2024, Elizabeth Davis loaned $185575 to William Wilson. A zero-interest-bearing note (face amount, $247000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31,2026. The prevailing rate of interest for a loan of this type is 10%. The present value of $247000 at 10% for three years is $185575. What amount of interest income should Ms. Davis recognize in 2024?
$55676
$74100
$18557
$24700
On January 1,2024, Elizabeth Davis loaned $185575 to William Wilson. A

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