What is the notes effective interest rate

Assignment Help Financial Accounting

Reference no: EM13863522

On January 1, 2016, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2017. The 2016 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stock’s carrying value was $16,000. The company’s fiscal year ends on December 31.

What is the note's effective interest rate?

Reference no: EM13863522

Questions Cloud

About the tax return : Roberta Rhodes is single and was age 65 in 2014. she is claimed as a dependent by her son. in 2014, her only income was $1001 from a bank account. Does Roberta have to file a 2014 tax return?

Equipment was purchased two years ago at cost : Journalize the adjusting entry needed at March 31, the fiscal year-end, for the independent situations. No other adjusting entries have been made for the year. Equipment was purchased two years ago at a cost of $10,500. The equipment's useful life is..

Process for converting present values into future values : The process for converting present values into future values is called ______. Investments and loans base their interest calculations on one of two possible methods: the ____ interest and the ____ interest methods.

What was capital balance at the end of year : Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual c..

What is the notes effective interest rate : On January 1, 2016, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2017. What is the note's effective interest rate?

The internal revenue code : The Internal Revenue Code (IRC) is the supreme source of income tax law. When trying to resolve an income tax question, a tax practitioner will look to other sources in addition to the IRC. What are some reasons a tax practitioner would not consult t..

Transactions related to accounts and notes receivable : Holly Transport Inc. had the following transactions related to accounts and notes receivable.

Finance operating costs and capital expenditures : DLK is a C corporation. Each individual contributed $10,000 to the company in exchange for 1,000 shares of DLK stock (for a total of 3,000 shares). The corporation also borrowed $250,000 from ACME Venture Capital to finance operating costs and capita..

When bond issue price is greater than its face value : When a bond Issue price is greater than its face value, the actual rate of interest that must be paid is called

User Account

All Pages