Question
On December 31, 2015, Green Company performed environmental consulting services for Juthour Gardens Co. Juthour was short of cash, and Green Co. agreed to accept
On December 31, 2015, Green Company performed environmental consulting services for Juthour Gardens Co. Juthour was short of cash, and Green Co. agreed to accept a $300,000 zero-interest-bearing note due December 31, 2017, as payment in full. Juthour is some-what of a credit risk and typically borrows funds at a rate of 10%. Green is much more creditworthy and has various lines of credit at 5%. The following interest factors are provided: Interest Rate Table Factors For Two Periods 5% 10% Future Value of 1 1.10250 1.21000 Present Value of 1 0.90703 0.82645 Future Value of Ordinary Annuity of 1 2.05000 2.10000 Present Value of Ordinary Annuity of 1 1.85941 1.73554 The issue price of the note is
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