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age 2: 3: On January 1, 2020, West Co. exchanged equipment for an $600,000 zero-interest- bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 11%. The present value of $1 at 11% for three periods is 0.73. What amount of interest revenue should be recorded in the first year of the note? $53,480 $60,340 $48,180 $0 Previous Page Next Page: Page 44 of 53

age 2: 3: On January 1, 2020, West Co. exchanged equipment for an $600,000 zero-interest- bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 11%. The present value of $1 at 11% for three periods is 0.73. What amount of interest revenue should be recorded in the first year of the note? $53,480 $60,340 $48,180 $0 Previous Page Next Page: Page 44 of 53

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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age 2: 3: On January 1, 2020, West Co. exchanged equipment for an $600,000 zero-interest- bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 11%. The present value of $1 at 11% for three periods is 0.73. What amount of interest revenue should be recorded in the first year of the note? $53,480 $60,340 $48,180 $0 Previous Page Next Page: Page 44 of 53
Transcribed Image Text:age 2: 3: On January 1, 2020, West Co. exchanged equipment for an $600,000 zero-interest- bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 11%. The present value of $1 at 11% for three periods is 0.73. What amount of interest revenue should be recorded in the first year of the note? $53,480 $60,340 $48,180 $0 Previous Page Next Page: Page 44 of 53
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