On January 1, 2020, Ann Price loaned $154440 to Joe Kiger. A zero-interest-bearing note (face amount, $200000) 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 $200000 at 9% for three years is $154440. What amount of interest income should Ms. Price recognize in 2020
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On January 1, 2020, Ann Price loaned $154440 to Joe Kiger. A zero-interest-bearing note (face amount...
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