On January 1, 20X1, Tractor Sales Co. financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately recorded the sale at the face value and coupon rate in the below income statement. Notes receivable (Face value ) 430,000 Tax rate 30% Note receivable information: Term of the note 4 years Coupon rate 1.5% Market rate 6.2% The note is due in equal annual payments of principle and interest. Incorrect income statement, for the year ended December 31, 20X1: Sales $1,832,200 Interest revenue 6, 450 Cost of goods sold 826, 300 Expenses 657,800 Pretax income 354, 550 Tax expense 106,365 Net income $248, 185 What is the correct amount of interest revenue? Multiple Choice 6,450 23,858 26,660 19,579

On January 1, 20X1, Tractor Sales Co. financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately recorded the sale at the face value and coupon rate in the below income statement. Notes receivable (Face value ) 430,000 Tax rate 30% Note receivable information: Term of the note 4 years Coupon rate 1.5% Market rate 6.2% The note is due in equal annual payments of principle and interest. Incorrect income statement, for the year ended December 31, 20X1: Sales $1,832,200 Interest revenue 6, 450 Cost of goods sold 826, 300 Expenses 657,800 Pretax income 354, 550 Tax expense 106,365 Net income $248, 185 What is the correct amount of interest revenue? Multiple Choice 6,450 23,858 26,660 19,579

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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