Question
Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/16. Coffee Co. promises to repay $500,000 at
Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/16. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/16 was 4%. What is the carrying value of this note on the balance sheet on 12/31/16?
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Montgomery Auditing Continuing Professional Education
Authors: Patrick J. McDonnell, Barry N. Winograd, James S. Gerson, Henry R. Jaenicke, Vincent M. O'Reilly
12th Edition
0471346055, 978-0471346050
