Question
Note: Three Questions are related to the same Information On December 31, 2019, Flint Corporation sold for 75,000 an old machine having an original cost
Note: Three Questions are related to the same Information
On December 31, 2019, Flint Corporation sold for 75,000 an old machine having an original cost of 135,000 and a book value of 60,000, and accepted 2-year note receivable of 100,000, 7% payable semi-annually, in exchange. 6% would be a fair rate for this type of transaction.
1- What should be the amount of the notes receivable recorded on December 31, 2019 rounded to the nearest dollar?
a. 0
b. 98,185
c. 100,000
d. 101,859
2- What should be the amount of the interest revenue for the year 2020 rounded to the nearest dollar?
a. 5,098
b. 6,098
c. 6,872
d. 7,872
3- The amount of the note carrying amount as of December 31, 2021 rounded to the nearest dollar is:
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