On January 1, 2016, the Apex Company exchanged some shares of common stock it had...
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Accounting
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 stocks carrying value was $16,000. The companys fiscal year ends on December 31.
What is the note's effective interest rate?
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