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The ABC Company rendered services on 1/1/10 and accepted a $20,000, 10%, 5-year note receivable with interest to be paid annually on 12/31/10 through 12/31/14.
The ABC Company rendered services on 1/1/10 and accepted a $20,000, 10%, 5-year note receivable with interest to be paid annually on 12/31/10 through 12/31/14. The principal will be paid in full on 12/31/14. ABCs effective interest rate is 12% and the effective amortization method is used. ABC Companys total interest income to be recorded in the years 2010 through 2014 will be:
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