Question: On September 1 , 2 0 2 0 , Live Oak Company borrows cash by issuing a one - year noninterest - bearing note payable

On September 1,2020, Live Oak Company borrows cash by issuing a one-year noninterest-bearing note payable to Suburban Bank in the amount of $61,480. The market rate of the note is 6%. The company amortizes any discount on the note using the straight-line method.
On December 31,2020, Live Oak Companys annual report date, what amount should Live Oak Company report as the Discount on Note Payable?
On September 1,2020, Live Oak Company borrows cash by issuing a one-year noninterest-bearing note payable to Suburban Bank in the amount of $61,480. The market rate of the note is 6%. The company amortizes any discount on the note using the straight-line method.
On December 31,2020, Live Oak Companys annual report date, what amount should Live Oak Company report as the Discount on Note Payable?
$2,030
$1,480
$1,230
$2,320

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