Question
On January 1, The Blue Taco loaned 100,000 to an employee, principle and interest (10%) due in one year. However, the firm needed the money
On January 1, The Blue Taco loaned 100,000 to an employee, principle and interest (10%) due in one year. However, the firm needed the money sooner, so they sold the note to a bank on November 1. The bank discounted the note at 15%.
- How much interest did the firm accrue, if any?
- How much did the bank pay for the note?
- What loss or gain did the firm record, if any?
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International Financial Reporting
Authors: Alan Melville
7th Edition
1292293128, 9781292293127
