On January 1, 2016, the Apex Company exchanged some shares of common stock it had...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2016, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2017. The 2016 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stocks carrying value was $16,000. The companys fiscal year ends on December 31.
What is the note's effective interest rate?
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!
