On January 1, 2015, Fullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%). The goods have an inventory cost on Fullbright's books of $240,000. What amount of Interest Revenue should Fullbright recognize in 2015?

$ 57,352

$229,406

$ 75,529

$ 48,000

Question

Business

Kallie Medina

27 June, 01:03

On January 1, 2015, Fullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%). The goods have an inventory cost on Fullbright's books of $240,000. What amount of Interest Revenue should Fullbright recognize in 2015?

$ 57,352

$229,406

$ 75,529

$ 48,000

+5

Answers (1)

Know the Answer?

Aurora Burke · Answer 1

correct option is $ 48,000

Explanation:

given data

sold good = $400,000

time = 4 year

face amount = $629,406

rate = 12%

inventory cost = $240,000

to find out

amount of Interest Revenue

solution

we find interest revenue that is express as

interest revenue = good cost * rate

interest revenue = 400,000 * 12%

interest revenue = $48000

so correct option is $ 48,000