19. On January 1, 2010, West Co. sold equipment for a $400,000 zero-interest-bearing note dueon January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was10%. What amount of interest revenue should be included in West's 2011 income statement?a. $0b. $30,000c. $33,000d. $40,000
19. On January 1, 2010, West Co. sold equipment for a $400,000 zero-interest-bearing note dueon January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was10%. What amount of interest revenue should be included in West's 2011 income statement?a. $0b. $30,000c. $33,000d. $40,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Question
19. On January 1, 2010, West Co. sold equipment for a $400,000 zero-interest-bearing note due
on January 1, 2013. The prevailing rate of interest for a note of this type at January 1, 2010 was
10%. What amount of interest revenue should be included in West's 2011 income statement?
a. $0
b. $30,000
c. $33,000
d. $40,000
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