When the federal government makes a direct loan at an interest rate below the prevailing...
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Accounting
When the federal government makes a direct loan at an interest rate below the prevailing Treasury rate (a subsidized loan), an asset should be recorded for which of the following amounts?
| The face amount of the loan. | ||
| The present value of the future principal and interest payments discounted at the stated rate. | ||
| The present value of the future principal and interest payments discounted at the comparable Treasury rate. | ||
| No asset should be recorded |
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