Trader Trust Accepts a $500,000 Non-Interest Bearing 20-Year Note from Coffee

question 108

Multiple Choice

Trader Trust accepts a $500,000 non-interest bearing 20-year note from Coffee Co. in exchange for Cash on 1/1/19. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/19 was 4%. What is the carrying value of this note on the balance sheet on 12/31/19?

• A) $500,000
• B) $228,193
• C) $237,321
• D) $262,679

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Definitions:

Environmental Management Accounting

The integration of environmental and financial decision-making processes to improve environmental and economic performance.

Traditional Management Accounting

An accounting approach focused on financial information, cost control, and budgeting techniques within an organization, traditionally emphasizing internal reporting.

Environmental Cost Data

Information related to the expenses incurred by a company due to environmental protection, pollution control, and the sustainable use of resources.

Environmental Costs

Expenses associated with the negative impact of a company's actions on the environment, including remediation, prevention, and external costs.