Rooster sold goods with a market price of $150,000 on April 1. They accepted a note from
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Question:
Rooster sold goods with a market price of $150,000 on April 1. They accepted a note from Lawson Inc. for $150,000 due in two years, with interest paid each year on April 1, bearing 8% interest. If 8% interest approximates the market rate of interest for this transaction,
how much interest should be accrued at the company's December 31 year-end?
$9,000
$6,000
$24,000
$12,000
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: