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show all work, the answer is not a On January 1, 2020, XYZ Co. loaned $187,825 to ABC Co. A zero-interest-bearing note (face amount, $250,000)
show all work, the answer is not a
On January 1, 2020, XYZ Co. loaned $187,825 to ABC Co. A zero-interest-bearing note (face amount, $250,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. What amount of interest income should XYZ recognize in 2020? $16,904 b. $18,783 $22,500 d. $25,000 a. c. On January 1, 2020, XYZ Co. loaned $187,825 to ABC Co. A zero-interest-bearing note (face amount, $250,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. What amount of interest income should XYZ recognize in 2020? $16,904 b. $18,783 $22,500 d. $25,000 a. cStep by Step Solution
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