Question
On January 1, 2015, Dolan Corp. sold goods to Gore, Co. Gore Co. signed a zero-interest-bearing note requiring payment of $250,000 annually for 7 years.
On January 1, 2015, Dolan Corp. sold goods to Gore, Co. Gore Co. signed a zero-interest-bearing note requiring payment of $250,000 annually for 7 years. The first payment was made on January 1, 2015. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:
Present Value Present Value of Ordinary Period of 1 at 10% Annuity of 1 at 10% 6 .5645 4.3553 7 .5132 4.8684
olan should record sales revenue in January 2015 of
Select one:
A. $1,088,825.
B. $1,197,708
C. $1,217,100
D. $1,338,810
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