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Business, 30.10.2020 17:40 zanestone12

On January 1, 2024, Ball Co. exchanged equipment for a $500,000 zero-interest-bearing note due on January 1, 2027. The prevailing rate of interest for a note of this type at January 1, 2024 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Ball's 2025 income statement? a. $37,500.
b. $41,250 .
c. 50,000.
d. $0.

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On January 1, 2024, Ball Co. exchanged equipment for a $500,000 zero-interest-bearing note due on Ja...
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