Multiple Choice
Exhibit 14-11 Hernandez, Ltd.issued a three-year, $100, 000, non-interest-bearing note to a customer on January 1, 2010.Hernandez also agrees to sell inventory to the customer at reduced rates over a five-year period.Hernandez's incremental interest rate is 10%, and the present value of the note is $75, 132.
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Refer to Exhibit 14-11.Hernandez's total liabilities after recording the note have increased by
A) $ 24, 868
B) $ 75, 132
C) $ 82, 645
D) $100, 000
Correct Answer:
Verified
Correct Answer:
Verified
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