Solution-What amount of interest income should ms price

What amount of interest income should ms price recognize

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Reference no: EM131796919

On January 1, 2012, Ann Price loaned $90,156 to Joe Kiger.

A zero-interest-bearing note (face amount, $120,000) was exchanged solely for cash; no other rights or privileges were exchanged.

The note is to be repaid on December 31, 2014. The prevailing rate of interest for a loan of this type is 10%.

The present value of $120,000 at 10% for three years is $90,156. What amount of interest income should Ms. Price recognize in 2012?

Reference no: EM131796919

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What amount of interest income should ms price recognize

Reference no: EM131796919

Reference no: EM131796919

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