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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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