What amount should the note payable be reported at year-end

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Reference no: EM132806659

Problem 1: At year-end Roth Company issued a P1,500,000 face value note payable in exchange for services rendered. The note, usual trade terms, is due in nine months and bears interest, payable at maturity, at the annual rate of 3%. The market interest rate is 8%. The compound interest factor of 1 due in nine months at 8% is .944. At what amount should the note payable be reported at year-end?

a. 1,447,800
b. 1,416,000
c. 1,545,000
d. 1,500,000

Reference no: EM132806659

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