On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount,...
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On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020? O $19459. O $75600. $56950. O $25200. On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020? O $19459. O $75600. $56950. O $25200.
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Related Book For
Organizational Behavior Managing People and Organizations
ISBN: 978-1305501393
12th edition
Authors: Ricky W. Griffin, Jean M. Phillips, Stanley M. Gully
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