For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.
If you have difficulty answering the following questions, learn more about this topic by reading our Present Value of a Single Amount (Explanation).
When The Note Is Received
Over The Life Of The Note
When The Note Matures
When The Note Is Received
Over The Life Of The Note
When The Note Matures
PV Of 1 Factor For 10%
PV Of 1 Factor For 12%
Borrowing Rate Of Company X
Borrowing Rate Of Corp Y
Use the following information for answering Questions 14 – 18:
Company X’s accounting year ends on December 31 of each year. On December 31, 2022 Company X received a promissory note from Corp. Y in exchange for services provided by Company X. The fair market value of the services is not known and the fair market value of the note is not known. The note is for $20,000 and it is due on December 31, 2024. No interest is specified in the note. Company X computed the present value of the note to be $16,000 as of December 31, 2022.
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