On January 1, year 2, the Carpet Company lent $100,000 to its supplier, Loom Corporation,...
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Accounting
On January year the Carpet Company lent $ to its supplier, Loom Corporation, evidenced by a note, payable in years. Interest at is payable annually with the first payment due on December year The going rate of interest for this type of loan is The parties agreed that Carpet's inventory needs for the loan period will be met by Loom at favorable prices. Assume that the present value at the going rate of interest of the $ note is $ at January year What amount of interest income, if any, should be included in Carpet's year income statement?
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