Homework Answers
Answer:
Present value of notes receivable = $160,000 * 0.75 =
$120,000
Interest recognized in 2010 = $120,000 * 10% = $12,000
Interest recognized in 2011 = ($120,000+$12,000)*10% = $13,200
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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, 2019. The prevailing rate of
interest for a loan of this type is 9%. The present value of
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income should Ms. Price recognize in 2017?
$75600.
$56950.
$19459.
$25200.
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third year, December 31,2021. The implicit interest rate is 10%.
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