Ask Question
30 November, 00:49

Mayer Company received a seven-year zero-interest-bearing note on February 22, 2016, in exchange for property it sold to Reardon Company. There was no established exchange price for this property and the note has no ready market. The prevailing rate of interest for a note of this type was 7% on February 22, 2016, 7.5% on December 31, 2016, 7.7% on February 22, 2017, and 8% on December 31, 2017. What interest rate should be used to calculate the interest revenue from this transaction for the years ended December 31, 2016 and 2017, respectively? A. 0% and 0%

B. 7% and 7%

C. 7% and 7.7%

D. 7.5% and 8%

+2
Answers (1)
  1. 30 November, 04:30
    0
    Answer is B

    7% and 7%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Mayer Company received a seven-year zero-interest-bearing note on February 22, 2016, in exchange for property it sold to Reardon Company. ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers