Answered: on January 1 2024, mary johnson load… | bartleby

CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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4

on january 1 2024, mary johnson load
$180312 to jimmy jones. a zero-interest
bearing note (face amount $240000)
was exchanged solely for cash, no
other rights or privileges were
exchanged. the note is to be repaid on
december 31 2026. the prevailing rate
of interest for a loan of this type is 10%.
the present value of $240000 at 10%
for three years is $180316. what
amount of interest income shouldms
johnson recognize in 2024

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