Essay
Note with fair value not equal to cash consideration On January 1, 2013, Senegal Corp.lent $50,000 to its CEO, interest-free.However, the loan is repayable in five instalments, each December 31, until paid.The market rate for similar loans (with similar credit risk)is 4%. Instructions
a)Calculate the present value (fair value)of this loan (round to the nearest dollar).
b)Prepare the journal entry to record this transaction.
Correct Answer:
Verified
Correct Answer:
Verified
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