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On January 1, 2017, Bonita Industries exchanged equipment for a $680000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a
On January 1, 2017, Bonita Industries exchanged equipment for a $680000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a note of this type at January 1, 2017 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Bonita's 2018 income statement?
|
| $0 |
|
| $51000 |
|
| $56100 |
|
| $68000 |
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