On January 1, 2020, a company sold and delivered equipment to a customer, in exchange for a zero-interest bearing note with a face value of $740,000 that is due in three years. The present value factor for three periods with the interest rate of 5% is 0.864. The company amortizes any premium/discount using the effective interest method. The amount of revenue to be recognized on this transaction in 2020 is (add sales revenue and interest revenue. Round to the nearest dollar if necessary.).

Answer rating: 100% (QA)

Face value 740000 X PV factor 0864 S... View the full answer