Ireland Corporation Obtained a $40,000 Note Receivable from a Customer

question 136

Multiple Choice

Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2018. The note, along with interest at 6%, is due on June 30, 2019. On September 30, 2018, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 10%. What amount of cash did Ireland receive from Cloverdale Bank?

• A) $40,600.
• B) $36,000.
• C) $39,220.
• D) $36,820.

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