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Sweet Acacia Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $130,000, with 50% payable in one year and
Sweet Acacia Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $130,000, with 50% payable in one year and the remaining 50% payable in two years from the date of sale. Sweet Acacia estimates that the interest rate for a similar financing arrangement would be 12%. Calculate the amount of revenue that Sweet Acacia should recognize on the date of sale.
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