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On January 2, 2019, Corp. G sold a piece of land to Corp. J. Corp. J signed a promissory note with no stipulated interest rate
On January 2, 2019, Corp. G sold a piece of land to Corp. J. Corp. J signed a promissory note with no stipulated interest rate whereby it agrees to pay $ 1,000,000 as of December 31, 2021. The rate The prevailing interest rate for instruments of similar risk is 12%. The present value of the note as of January 2, 2019 is $ 711,780 (rounded or approximated) What will be the balance in the Discount in Promissory Note payable account as of December 31, 2019? Assume that all adjustments have been made.
a. $168,220 b. $0 c. $288,220 d. $202,806
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