Ask Question
7 January, 10:19

On January 1, 2020, Ann Price loaned $192186 to Joe Kiger. A zero-interest-bearing note (face amount, $270000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 12%. The present value of $270000 at 12% for three years is $192186. What amount of interest income should Ms. Price recognize in 2020?

+4
Answers (1)
  1. 7 January, 10:35
    0
    The amount of interest income should Ms. Price recognize in 2020 is $23,062

    Explanation:

    Amount of interest income should Ms. Price recognize in 2020

    = $192186*12%

    = $23,062.32

    = $23,062

    Therefore, The amount of interest income should Ms. Price recognize in 2020 is $23,062
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, 2020, Ann Price loaned $192186 to Joe Kiger. A zero-interest-bearing note (face amount, $270000) was exchanged solely for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers