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On January 1, 20Q, the city government agreed to provide Probity Company with a 5,000,000 three-year, zero-interest loan evidenced by promissory note.
The prevailing rate of interest for a loan of this type is 10% and the present value of 1 at 10% for three years is .75.
Problem a. What is the journal entry to record the transaction on Jan. 1, 20Q?
Problem b. What is the interest expense for 20Q?
Problem c. What is the deferred grant income on December 31, 20Q?
Problem d. What is the carrying amount of the note payable on December 31, 20R?
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How did the U.S. government and Federal Reserve respond to the perfect financial storm in 2008-2009 and recent world health pandemic (covid-19)
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