Ivanhoe Company receives a threeyear, $ zerointerestbearing note, and the related present value with a market interest rate
of is $ The total discount of $ under the straightline method is amortized over the threeyear period in equal
amounts each year. Therefore, the annual amortization is $ or $
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Prepare the entry to record the annual interest for years and under the straightline method and the effective interest method.
Credit account titles are automatically indented when the amount is ontered. Do not indent manually. If no entry is required, select No Entry"
for the account titles and enter for the amounts. List all debit entries before credit entries. For calculation purposes, use decimal places as
displayed in the factor table provided and final answer to decimal places, eg
StraightLine
Effective Interest
