Question: On January 1 , Year 3 , Mill Co . exchanged equipment for a $ 2 0 0 , 0 0 0 , noninterest -

On January 1, Year 3, Mill Co. exchanged equipment for a $200,000, noninterest-bearing note due on January 1, Year 6. The prevailing rate of interest for a note of this type at January1, Year 3, was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Mills Year 4 income statement?

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