320 exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2026. The prevailing rate of interest for a loan of this type is 8%. The present value of $262000 at 8% for three years is $207984. What amount of interest income should Ms. Clark recognize in 2024?
320 exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2026. The prevailing rate of interest for a loan of this type is 8%. The present value of $262000 at 8% for three years is $207984. What amount of interest income should Ms. Clark recognize in 2024?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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![On January 1, 2024, Sandra Clark loaned $207976 to George Lewis. A zero-interest-bearing note (face amount, $262000) was
exchanged solely for cash: no other rights or privileges were exchanged. The note is to be repaid on December 31, 2026. The prevailing
rate of interest for a loan of this type is 8%. The present value of $262000 at 8% for three years is $207984. What amount of interest
income should Ms. Clark recognize in 2024?
O $46332
O $20960
$16638
O $62830](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2F6d8a39c9-95ec-4259-9c25-60b16fd764d8%2Fwr3jr1m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2024, Sandra Clark loaned $207976 to George Lewis. A zero-interest-bearing note (face amount, $262000) was
exchanged solely for cash: no other rights or privileges were exchanged. The note is to be repaid on December 31, 2026. The prevailing
rate of interest for a loan of this type is 8%. The present value of $262000 at 8% for three years is $207984. What amount of interest
income should Ms. Clark recognize in 2024?
O $46332
O $20960
$16638
O $62830
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