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The market interest rate for a note of this type on January 1, 2021 was 10%. Present value factor for $1 at 10% for 3 periods is 0.7513 Present value factor for an ordinary annuity of $1 at 10% for 3 periods is 2.4868 How much interest revenue should Hemisphere report in its income statement for the year 2022? Round all calculations to the nearest whole dollar. a.$41,450 b.$50,000 c.$41,321 d.$50,004

The market interest rate for a note of this type on January 1, 2021 was 10%. Present value factor for $1 at 10% for 3 periods is 0.7513 Present value factor for an ordinary annuity of $1 at 10% for 3 periods is 2.4868 How much interest revenue should Hemisphere report in its income statement for the year 2022? Round all calculations to the nearest whole dollar. a.$41,450 b.$50,000 c.$41,321 d.$50,004

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2011, B corp. sold land for a $500,000 noninterest bearing note due on January 1, 2024. The market interest rate for a note of this type on January 1, 2021 was 10%. Present value factor for $1 at 10% for 3 periods is 0.7513 Present value factor for an ordinary annuity of $1 at 10% for 3 periods is 2.4868 How much interest revenue should Hemisphere report in its income statement for the year 2022? Round all calculations to the nearest whole dollar. a.$41,450 b.$50,000 c.$41,321 d.$50,004
Transcribed Image Text:On January 1, 2011, B corp. sold land for a $500,000 noninterest bearing note due on January 1, 2024. The market interest rate for a note of this type on January 1, 2021 was 10%. Present value factor for $1 at 10% for 3 periods is 0.7513 Present value factor for an ordinary annuity of $1 at 10% for 3 periods is 2.4868 How much interest revenue should Hemisphere report in its income statement for the year 2022? Round all calculations to the nearest whole dollar. a.$41,450 b.$50,000 c.$41,321 d.$50,004
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