On September 30, 2021, Texans Inc. lent $120,000 to Vikings Inc., accepting Vikings Inc.'s $168,306, 5 years, zero-interest-bearing note. The implicit interest rate is 7% which is equivalent to the market rate. Texans Inc. recorded correctly the journal entries as Dr. Loan receivable $120,000; and Cr. Cash $120,000 on September 30, 2021. What is the carrying value of the loan at December 31, 2022?

Answer rating: 100% (QA)

To calculate the carrying value of the loan at December 31 2022 we need to understand that the zeroi... View the full answer