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On January 1, 2019, ABC Company sold a piece of land to XYZ Company in exchange for a promissory note. No stipulated interest rate. XYZ
On January 1, 2019, ABC Company sold a piece of land to XYZ Company in exchange for a promissory note. No stipulated interest rate. XYZ agreed to pay five installments of $200,000 per year on the 31 December of each year. The prevailing interest rate for a similar risk instrument is 9%. Determine the book value of the note on January 1, 2020: a. $800,000 b. $585,890 c. $647,944 d. $785,890
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Fundamentals Of Cost Accounting
Authors: T.R.Sikka
7th Edition
8130918706, 978-8130918709
