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On January 1,2017, Ann Price loaned $187,825 to Joe Kiger. A zero-lnterest-bearing note (face amount, exchanged solely for cash; no other rights or privileges were
On January 1,2017, Ann Price loaned $187,825 to Joe Kiger. A zero-lnterest-bearing note (face amount, exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of interest expense should Joe Kiger recognize in 2017? Select one: O a. $25,000 O b. $75,000 O c. $18,783 O d. $56,350 Next page ge
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