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On June 1, Parson Assoc. sold equipment to Arleo and agreed to accept a 3-month, $53,000, 10% interest-bearing note in payment at a time when

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On June 1, Parson Assoc. sold equipment to Arleo and agreed to accept a 3-month, $53,000, 10% interest-bearing note in payment at a time when the prevailing rate of interest for similar transactions was 10%. When the note was collected upon maturity, Parson would recognize interest revenue of: Multiple Choice $0 $1325 52.650 $3.975

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