What Is the Maturity Value of a 3-Month,12% Note for $20,000

question 105

Multiple Choice

What is the maturity value of a 3-month,12% note for $20,000?

• A) $20,000
• B) $22,400
• C) $21,200
• D) $20,600

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Definitions:

AASB 3

Specifies the accounting requirements for business combinations, detailing how an acquirer should recognize and measure the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree.

Revaluation

The process of adjusting the book value of a fixed asset or foreign currency to reflect current market values.

Inventory

The total amount of goods and materials held by a company intended for sale or production.

Gain on Bargain Purchase

The financial benefit that occurs when a company acquires another entity for a price below the fair value of its net assets.