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By December 31, 2023, Ayayai Corp. had performed a significant amount of environmental consulting services for Blossom Ltd. Blossom was short of cash, and Ayayai
By December 31, 2023, Ayayai Corp. had performed a significant amount of environmental consulting services for Blossom Ltd. Blossom was short of cash, and Ayayai agreed to accept a $154,000, non-interest-bearing note due December 31, 2025, as payment in full. Blossom is a bit of a credit risk and typically borrows funds at a rate of 15%. Ayayai is much more creditworthy and has various lines of credit at 8%. Ayayai reports under IFRS. The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (e) Assume instead that Ayayai reports under ASPE and uses the straight-line method to amortize the discount on the note. What would the interest income be relating to the note for 2024 and 2025? (Round answer to O decimal places, eg. 58,971.) Interest income for 2024 $ Interest income for 2025 $
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