On january 1 2001 art shell loaned 30052 to phil hilton a

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On January 1, 2001, Art Shell loaned $30,052 to Phil Hilton. A zero interest bearing note was exchanged solely for cash; no other rights or privileges were exchanged. the note is to be repaid on December 31, 2003. The prevailing rate of interest for a loan of this type is 10%. the present value of $40,000 at 10% for three years is $30,052. What amount of interest income should Shell recognize in 2001?

Reference no: EM13596555

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