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Latvia Limited made a loan to Lithuania Incorporated in exchange for a $250,000 note on July 1, 2021. This note is for a period of
Latvia Limited made a loan to Lithuania Incorporated in exchange for a $250,000 note on July 1, 2021. This note is for a period of seven years, with interest at 4% quarterly. Assume the market rate for comparable loans is 8%. Prepare the journal entry in good form for Latvia Limiteds books. Show all your calculations (including amounts for variables, e.g. N = X, I = Y, etc.). (9 marks)
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