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On June 1, 2018, Dirty Harry Co

Question 37

Multiple Choice

On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $500,000 and a discount rate of 6%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2018?


A) $525,000.
B) $300,000.
C) $495,000.
D) $475,000.

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