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4 May, 17:06

On January 1, 2015, Fullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%). The goods have an inventory cost on Fullbright's books of $240,000. What amount of Interest Revenue should Fullbright recognize in 2015?

$ 57,352

$229,406

$ 75,529

$ 48,000

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  1. 4 May, 17:17
    0
    correct option is $ 48,000

    Explanation:

    given data

    sold good = $400,000

    time = 4 year

    face amount = $629,406

    rate = 12%

    inventory cost = $240,000

    to find out

    amount of Interest Revenue

    solution

    we find interest revenue that is express as

    interest revenue = good cost * rate

    interest revenue = 400,000 * 12%

    interest revenue = $48000

    so correct option is $ 48,000
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