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Question 1: On July 1, 20X3, Clear Water Corp. received a $45,000, three-year, 6% note receivable from a customer for services performed. Interest is payable annually, with the first payment due on June 30, 20X4. The market rate for similar notes is 8%. Clear Water has a December 31 fiscal year end. How much interest revenue should Clear Water recognize in the December 31, 20X3, fiscal year?
a) $1,350
b) $1,707
c) $2,700
d) $3,414
Which of the following entities may not use the cash method of accounting?
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