January 1, 2022, Abel Co. exchanged services for a $200,000 noninterest-bearing note due on January 1, 2027. The prevailing rate of interest for a note of this type at January 1, 2022 was 10%. The present value of $1 at 10% for five periods is 0.621. What amount of interest revenue should be included in Abel's 2023 income statement?

January 1, 2022, Abel Co. exchanged services for a $200,000 noninterest-bearing note due on January 1, 2027. The prevailing rate of interest for a note of this type at January 1, 2022 was 10%. The present value of $1 at 10% for five periods is 0.621. What amount of interest revenue should be included in Abel's 2023 income statement?

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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