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On January 1, 2017, Sheridan Company exchanged equipment for a $540000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a

On January 1, 2017, Sheridan Company exchanged equipment for a $540000 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 Sheridan's 2018 income statement?

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