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On January 1, 2021, Daniel Faust loaned $112,695 cash to Joyce Ladd in the form of a zero-interest-bearing note (face amount, $150,000). The note is
On January 1, 2021, Daniel Faust loaned $112,695 cash to Joyce Ladd in the form of a zero-interest-bearing note (face amount, $150,000). The note is to be repaid on December 31, 2023. The prevailing rate of interest for a loan of this type is 10%, and the present value of $150,000 at 10% for three years is $112,695.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
