Question
Question 2 On January 1, 2020, Joe Bat loaned $75,130 to Amy Hatch. A zero-interest-bearing note (face amount $100,000) was exchanged for the cash. The
Question 2
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On January 1, 2020, Joe Bat loaned $75,130 to Amy Hatch. A zero-interest-bearing note (face amount $100,000) was exchanged for the cash. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 10%. The present value of $100,000 at 10% for three years is $75,130. What amount of interest income should Joe recognize in 2020?
$7,513.
$10,000.
$30,000.
$22,540.
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The Wall Street Mba Your Personal Crash Course In Corporate Finance
Authors: Reuben Advani
3rd Edition
1260135594, 9781260135596
