On january 1 2016 the apex company exchanged some shares of, Ask an Expert

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On January 1, 2016, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2017. The 2016 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stock’s carrying value was $16,000. The company’s fiscal year ends on December 31.

What is the note's effective interest rate?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91524242

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