On January 1, 2018, Ball Co

Multiple Choice

On January 1, 2018, Ball Co. exchanged equipment for a £200,000 zero-interest-bearing note due on January 1, 2021. The prevailing rate of interest for a note of this type at January 1, 2018 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Ball's 2019 income statement?

A) £0
B) £15,000
C) £16,500
D) £20,000