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On January 1, 2017, West Co. exchanged equipment for an $700,000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a
On January 1, 2017, West Co. exchanged equipment for an $700,000 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%. What amount of interest revenue should be included in West's 2018 income statement? a. $52,592 b. $63,637 c. $57,852 d. $0 e. $70,000
On January 1, 2017, West Co. exchanged equipment for an $700,000 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%. What amount of interest revenue should be included in West's 2018 income statement?
a. $52,592 b. $63,637 c. $57,852 d. $0
e. $70,000
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
978-0078025518
