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On January 1, 2017, Vaughn Manufacturing sold goods to Ivanhoe Company. Ivanhoe signed a zero-interest-bearing note requiring payment of $199000 annually for seven years. The
On January 1, 2017, Vaughn Manufacturing sold goods to Ivanhoe Company. Ivanhoe signed a zero-interest-bearing note requiring payment of $199000 annually for seven years. The first payment was made on January 1, 2017. The prevailing rate of interest for this type of note at date of issuance was 8%. Information on present value factors is as follows
A) $1118959
B) $1036074
C) $919957
D) $746000
Present Value Present Value of Ordinary Period of 1 at 8% 0.6302 0.5835 Annuity-of1at8% 4.6229 5.2064 7 Vaughn should record sales revenue in January 2017 ofStep by Step Solution
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