1. Riley Company borrowed $34,000 on April 1, Year 1 from the Titan Bank. The...
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Accounting
1. Riley Company borrowed $34,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 4% annual interest rate. Riley earned cash revenue of $1,000 in Year 1 and $800 in Year 2. Assume no other transactions.
The amount of net income on the Year 2 income statement would be:
Multiple Choice
a) $340.
b) $460.
c) $(120).
d) $1,140.
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