Desrosiers Ltd. received a $400,000 note receivable on December 31, 2019 from a customer to settle accounts payable. The note bears interest at 10%, and is due on December 31, 2022. The market interest rate is 8%. The interest payment on the note is made annually. For the year of 2020, the interest revenue earned on this note is:

Desrosiers Ltd. received a $400,000 note receivable on December 31, 2019 from a customer to settle accounts payable. The note bears interest at 10%, and is due on December 31, 2022. The market interest rate is 8%. The interest payment on the note is made annually. For the year of 2020, the interest revenue earned on this note is:

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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