On October 1, 2009, a company received a one-year note receivable bearing an interest rate at market rate. The face amount of the note receivable and the entire amount of the interest are due on September 30, 2010. The interest receivable account at December 31, 2009 would consist of an amount representing

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On October 1, 2009, a company received a one-year note receivable bearing an interest rate at market rate. The face amount of the note receivable and the entire amount of the interest are due on September 30, 2010. The interest receivable account at December 31, 2009 would consist of an amount representing
 
a. Three months of accrued interest income
B. Nine months of accrued interest income
C. Twelve months of accrued interest income
D. The excess at October 1, 2009 of the present value of the note receivable over its face value.
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