On January 1, 2020, Train, Inc. accepted an $80,000, non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three periods, follows:

Present value of 1	0.73119
Present value of annuity of 1	2.44371

What amount would Train record as interest income on December 31, 2020?

Question 1 options:

	$6,434
	$8,800
	$2,366
	$0

Answer rating: 100% (QA)

Correct answer is 6434 Explanation I... View the full answer