On January 1, 2016, Parke Company accepted a $36,000, non-interest-bearing, 3 year note from a...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2016, Parke Company accepted a $36,000, non-interest-bearing, 3 year note from a major customer in exchange for used equipment. The equipment had originally cost Parke $200,000 and had a book value of $20,000 on the date of eh sale. At the 12% imputed interest rate for this type of loan, the present value of the note is $25,500 at January 1, 2016. Parke uses the effective interest rate what is the carrying value of the note receivable on Parke's December 31, 2016 balance sheet?
a $28,560
b $29,000
c $32,500
d $36,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
