On January 1, 2022 a note was received where the present value of the note receivable is higher than the face value. Which of the following situation will corresponds to the situation? Group of answer choices the nominal interest on the note was 2% while the effective interest is 5% on January 1, 2022. the nominal interest on the note was 8% while the effective interest is 3% on January 1, 2022. the nominal interest on the note was 10% while the effective interest is 12% on January 1, 2022. the nominal interest on the note was 4% while the effective interest is 4% on January 1, 2022.
On January 1, 2022 a note was received where the present value of the note receivable is higher than the face value. Which of the following situation will corresponds to the situation? Group of answer choices the nominal interest on the note was 2% while the effective interest is 5% on January 1, 2022. the nominal interest on the note was 8% while the effective interest is 3% on January 1, 2022. the nominal interest on the note was 10% while the effective interest is 12% on January 1, 2022. the nominal interest on the note was 4% while the effective interest is 4% on January 1, 2022.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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Question
60.
On January 1, 2022 a note was received where the present value of the note receivable is higher than the face value. Which of the following situation will corresponds to the situation?
Group of answer choices
the nominal interest on the note was 2% while the effective interest is 5% on January 1, 2022.
the nominal interest on the note was 8% while the effective interest is 3% on January 1, 2022.
the nominal interest on the note was 10% while the effective interest is 12% on January 1, 2022.
the nominal interest on the note was 4% while the effective interest is 4% on January 1, 2022.
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