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Calculate the amount of revenue to be recognized

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Question - On June 1, 2014, Johnson and Sons sold equipment to James Landscaping Services. In exchange for a zero-interest bearing not with a face value of $55,000, with payment due in 12 months. The fair value of the equipment on the date of sale was $50,000. The amount of revenue to be recognized on this transaction in 2014 is

a. $55,000

b. $5,000

c. $50,000

d. $50,000 sales revenue and $2,917 interest revenue.

Reference no: EM132189548

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