Business, 16.07.2021 02:20 yejinschoi6362
On January 1, 20X4, Parke Company borrowed $360,000 from a major customer evidenced by a non-interest bearing note due in three years and Parke did not elect the fair value option. Parke agreed to supply the customer's inventory needs for the loan period at lower than market price. At the 12% imputed interest rate for this type of loan, the present value of the note is $255,000 at January 1, 20X4. What amount of interest expense should be included in Parke's 20X4 income statement
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On January 1, 20X4, Parke Company borrowed $360,000 from a major customer evidenced by a non-interes...
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