5. Company B received a three-year, $100,000 zero-interest bearing note. The market rate for a note of similar risk is 4%. What is the carrying amount of the note at date of issuance?

$100,000

$88,849

$112,486

$88,900

6.

Which of the following is true about cash equivalents?

All is true

They do not pose significant risks of changes in value

They are investments that are close to maturity

They are readily convertible to cash