Terps Company received a promissory note from a customer on October 1, 2019. The principal amount of the note is $25,000; the terms are 8 months and a 6% annual interest. Assuming the accounting period ends on December 31, determine the interest revenue recorded by the company for the year ending on December 31, 2020

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?