Question
On November 1, Year 1, Salem Corporation sold land priced at $640,000 in exchange for a 3%, six-month note receivable. On May 1, Year 2
On November 1, Year 1, Salem Corporation sold land priced at $640,000 in exchange for a 3%, six-month note receivable.
On May 1, Year 2 (maturity date), the note is collected in full by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes which of the following in its income statement for Year 2 with regard to this note?
Multiple Choice
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$9,600 interest revenue.
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$649,600 sales revenue.
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$6,400 interest revenue.
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$3,200 interest revenue.
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
9780077862367
