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On December 31, 2024, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $ 820,000 , a
On December 31, 2024, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $820,000, a due date of December 31, 2027, and a stated interest rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.
(Review photo) The following interest factors are provided:
On December 31,2024 , Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $820,000, a due date of December 31,2027 , and a stated interest rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The following interest factors are provided: Determine the present value of the note. (Round answer to 0 decimal places, e.g. 5.275.) On December 31,2024 , Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $820,000, a due date of December 31,2027 , and a stated interest rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The following interest factors are provided: Determine the present value of the note. (Round answer to 0 decimal places, e.g. 5.275.) (Review photo) The following interest factors are provided:
Interest Rate | ||||
---|---|---|---|---|
Table Factors For Three Periods | 5% | 10% | ||
Future Value of 1 | 1.15763 | 1.33100 | ||
Present Value of 1 | 0.86384 | 0.751315 | ||
Future Value of Ordinary Annuity of 1 | 3.15250 | 3.31000 | ||
Present Value of Ordinary Annuity of 1 | 2.72325 | 2.48685 |
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