Exhibit 13-03 ? On January 1, 2017, Train, Inc accepted an $80,000, non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three
periods, follows: ? Present value of 1 0.73119 Present value of annuity of 1 2.44371 ? ? Refer to Exhibit 13-03. What amount would Train record as interest income on December 31, 2017?
A) $6,434
B) $8,800
C) $2,366
D) $0
A
You might also like to view...
Currency held by the nonbank public plus banks' vault cash plus banks' deposits at the Fed equals
A. the Fed's capital stock. B. discount loans. C. the monetary base. D. required clearing balances.
Who researched culture and leadership resulting in the GLOBE research program?
A. Adler and Bartholomew B. Hofstede C. Lord and Maher D. House et al.
An involuntary petition for bankruptcy can be filed against a:
a. non-profit charitable organization. b. partnership that invests in real estate. c. life insurance company. d. wheat farmer.
Dissociation normally entitles the partner to buy his or her interest from the partnership
Indicate whether the statement is true or false