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On January 1, 2020, Acute Corp will provided services in exchange for a $15,000 non-interest bearing note, with equal payments made at the end of
On January 1, 2020, Acute Corp will provided services in exchange for a $15,000 non-interest bearing note, with equal payments made at the end of each of the next five years. The customers normal borrowing rate is 6%.
A) Determine the amount of the annual payment.
B) Determine the initial carrying value of the note.
C) Determine interest revenue reported on the 2021 income statement.
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