Use the Following Information for Questions

question 13

Multiple Choice

Use the following information for questions.
On January 1, 2011, in an effort to lure Tar-Mart, a major discount retail chain to the area, the city of Bordeaux agreed to provide the company with a €6,000,000 three-year, Zero-interest bearing note.The prevailing rate of interest for a loan of this type is 10% and the present value of €6,000,000 at 10% for three years is €4,507,800.
-At the end of 2011, Tar-Mart will recognize

• A)interest expense of €450,780.
• B)grant revenue of €450,780.
• C)interest revenue of €149,220.
• D)none of these.

---

Definitions:

195,000 Years

An estimate of the time period since the emergence of anatomically modern humans.

25,000 Years

An approximate time period which can reference significant dates in geologic, archaeological, or historical contexts.

Vision

Detection of light in a way that provides a mental image of objects in the environment.

Information Processing

The mental process by which beings acquire, store, retrieve, and use information.