Question
On 1/1, Eli Inc. sold $120,000 of goods and accepted the customer's $120,000, 8% 2-year interest-bearing Note Receivable in exchange. Interest is paid annually. Assuming
On 1/1, Eli Inc. sold $120,000 of goods and accepted the customer's $120,000, 8% 2-year interest-bearing Note Receivable in exchange. Interest is paid annually. Assuming a 10% market rate of return, what would be the carry value (worth) on 1/1?
A. $24,000
B. $120,000
C. $115,835
D. $124,280
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Management Accounting Principles And Applications
Authors: Hugh Coombs, D Ellis Jenkins, David Hobbs
1st Edition
1412908434, 978-1412908436
