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Problem - CXC Ltd., which reports under IFRS and has a December 31 year-end, bought equipment on January 1, 20X1. The company could have purchased the asset for $110,000 cash but instead, paid for it by issuing a non-interest-bearing note payable with a maturity amount of $136,271 due on December 31, 20X4.
Required - Find the interest rate that the note is incurring interest at? Express your answer in percent to two decimal places?
Financial Statement Analysis and Preparation
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