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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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Transcribed Image Text: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:
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