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6 of 10 -18 Current Attempt in Progress Wildhorse Company receives a three-year, $13,000, zero-interest-bearing note, and the related present value with a market interest
6 of 10 -18 Current Attempt in Progress Wildhorse Company receives a three-year, $13,000, zero-interest-bearing note, and the related present value with a market interest rate of 9% is $10,038.34. The total discount of $2,961.66 under the straight-line method is amortized over the three-year period in equal amounts each year. Therefore, the annual amortization is $2,961.66-:3 or $987.22
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