Question
On January 1, 2023, Susan Hong lent $60855 to Ben Bachu. A zero-interest-bearing note (face amount, $81000) was exchanged solely for cash; no other
On January 1, 2023, Susan Hong lent $60855 to Ben Bachu. A zero-interest-bearing note (face amount, $81000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2025. The market rate of interest for a loan of this type is 10%. To the nearest dollar, and using the effective interest method, how much interest revenue should Ms. Hong recognize in 2023?
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
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