On July 1, 2017, Renaud Company finished architectural design services and accepted in exchange a promissory note with a face value of $300,000 and a maturity date of June 30, 2021. The stated rate of interest is 6% with interest receivable each June 30 through the maturity date. An effective interest rate of 12% is implicit in the agreed-upon price. The effective amortization method is used. 

Renaud’s total interest revenue to be recorded on the income statements during the years 2017 through 2021 will be approximately: 

Select one: 

a. $135,757 

b. $72,000 

c. $126,672 

d. $134,171

e. $162,000 

Answer rating: 100% (QA)

Information given in the question as follows 1 Accepted promissory note with face value 300000 ... View the full answer