On January 1, 2017, Ann Price loaned $187,825 to Joe Kiger. A zero-interest-bearing note (face amount, $250,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of interest expense should Joe Kiger recognize in 2017? Select one:
a. $25,000
b. $75,000
c. $56,350
d. $18,783
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, 2017, Ann Price loaned $187,825 to Joe Kiger. A zero-interest-bearing note (face amount, $250,000) 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
You Might be Interested in
In a macroeconomic context, choose the best definition for the term "velocity". The rate at which DGP increases in a year. The speed of capital accumulation. The rate at which money circulates through an economy.
Answers (1)
What is the difference between a stroke and a cycle?
Answers (1)
A company has a net sales of 847000 and cost of goods sold of 561500. Its net income is 101200. The company's gross margin and operating expenses, respectively are
Answers (1)
Which is an advantage corporations enjoy over sole proprietorships
Answers (1)
The demand for most agricultural products tends to be a. Both price and income elastic b. Both price and income inelastic c. Price inelastic and income elastic d. Price elastic and income inelastic e.
Answers (1)
New Questions in Business
Equity theory is the principle that when jobs are distinctly different but entail similar levels of ability, responsibility, skills, and working conditions, they are of equal value and should have the same pay scale. True False
Answers (1)
Which of the following situations will likely result in the highest price for a good? -high demand and high supply -low demand and high supply -low supply and low demand -low supply and high demand
Answers (1)
Which statement is not true? 26% of fortune 500 CEOs are women More than 50% of all professional level jobs are healed by women 8.1% of the top earners or women 4.6% of fortune 500 CEOs are women
Answers (1)
If in response to a spreading recession, the President calls for an increase in investment spending by businesses, which of the following would be the best policy mix to accomplish this goal without increasing the output level?
Answers (1)
How taxation and legislation impact positively (contribute to the company's success) and negatively (can lead to failure) on the company you visited
Answers (1)