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Business, 21.04.2020 00:42 hollycoleman13

On January 1, 2020, Ann Price loaned $212355 to Joe Kiger. A zero-interest-bearing note (face amount, $275000) 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 $275000 at 9% for three years is $212355.

What amount of interest income should Ms. Price recognize in 2020?

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On January 1, 2020, Ann Price loaned $212355 to Joe Kiger. A zero-interest-bearing note (face amount...
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