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On January 1, 20X1, Tractor Sales Co. financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately recorded the

On January 1, 20X1, Tractor Sales Co. financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately recorded the sale at the face value and coupon rate in the below income statement.

Notes receivable (Face value) 520,000
Tax rate 30%

Note receivable information:

Term of the note 4 years
Coupon rate 1.5%
Market rate 6.2%

The note is due in equal annual payments of principle and interest.

Incorrect income statement, for the year ended December 31, 20X1

Sales $2,215,700
Interest revenue 7,800
Cost of goods sold 999,300
Expenses 795,400
Pretax income 428,800
Tax expense 128,640
Net income 300,160

What is the correct amount of interest revenue?

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