On January 1, 2016, Parke Company accepted a $36,000, non-interest-bearing, 3 year note from a...
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On January 1, 2016, Parke Company accepted a $36,000, non-interest-bearing, 3 year note from a major customer in exchange for used equipment. The equipment had originally cost Parke $200,000 and had a book value of $20,000 on the date of eh sale. At the 12% imputed interest rate for this type of loan, the present value of the note is $25,500 at January 1, 2016. Parke uses the effective interest rate what is the carrying value of the note receivable on Parke's December 31, 2016 balance sheet?
a $28,560
b $29,000
c $32,500
d $36,000
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