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On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged solely for cash; no other
On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) 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%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020? O $19459. O $75600. $56950. O $25200.
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Organizational Behavior Managing People And Organizations
Authors: Ricky W. Griffin, Jean M. Phillips, Stanley M. Gully
12th Edition
130550139X, 978-1337332842, 1337332844, 978-0357687925, 978-1305856264, 1305856260, 978-1305501393
