On January 1, 2007, Abel Co

question 67

Multiple Choice

On January 1, 2007, Abel Co.exchanged equipment for a $160,000 noninterest-bearing note due on January 1, 2010.The prevailing rate of interest for a note of this type at January 1, 2007 was 10%.The present value of $1 at 10% for three periods is 0.75.What amount of interest revenue should be included in Abel's 2008 income statement?

• A)$0
• B)$12,000
• C)$13,200
• D)$16,000

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Definitions:

Reproduction

The biological process by which new individual organisms are produced, either asexually from a single parent or sexually from two parents.

Sexual Relationship

An intimate relationship between individuals that involves sexual activity.

Optimal Mating Strategy

A concept in evolutionary psychology that suggests individuals select mates in a way that will maximize their reproductive success and enhance the survival and quality of their offspring.

Parental Investment

signifies any investment by a parent in an individual offspring that increases the offspring's chance of surviving (and hence reproductive success) at the cost of the parent's ability to invest in other offspring.