On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131 What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 O $69872 O SO O $76859

On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131 What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 O $69872 O SO O $76859

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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