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At the Beginning of 2010, Gannon Company Received a Three-Year

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At the beginning of 2010, Gannon Company received a three-year zero-interest-bearing $1,000 trade note.The market rate for equivalent notes was 8% at that time.Gannon reported this note as a $1,000 trade note receivable on its 2010 year-end statement of financial position and $1,000 as sales revenue for 2010.What effect did this accounting for the note have on Gannon's net earnings for 2010, 2011, 2012, and its retained earnings at the end of 2012, respectively?


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Assimilation

Assimilation involves incorporating new information into existing cognitive schemas, a concept central to Piaget’s theory of cognitive development.

Existing Schemes

Cognitive structures or patterns of action and thought used to deal with experiences, according to Piaget's theory of cognitive development.

Sex Drive

A biological and emotional urge for sexual activity.

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