On May 1, 2020, VeryFine LTD

question 48

Multiple Choice

On May 1, 2020, VeryFine LTD. provides a vendor with a $18,000 non-interest-bearing note due on May 1, 2021 in exchange for furniture with a list price of $17,400. At what amount will the property be recorded in the accounting records? The company's banker has suggested that an appropriate market rate is 6% per annum for loans that mature in one year or less and 8% for loans with longer maturities.

• A)$16,415
• B)$16,667
• C)$16,981
• D)$18,000

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