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What amount of interest revenue should be included in income

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Question - On January 1, 2012, Ball Co. exchanged equipment for a $200,000 zero-interest-bearing note due on January 1, 2015. The prevailing rate of interest for a note of this type at January 1, 2012 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Abel's 2013 income statement?

A) $0

B) $20,000

C) $15,000

D) $16,500

Reference no: EM131793483

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