How much discount cicero recognize


Question: On April 1, Cicero Assoc. sold equipment to King Kong and accepted a 4-month, $100,000, noninterest-bearing note as payment. At the time of the transaction, the prevailing interest rate for similar transactions was 10%. How much discount will Cicero Assoc. recognize at the beginning of the transaction? $2,500 $5,000 $3,333.33 $0

 

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Accounting Basics: How much discount cicero recognize
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