Question - On July 1, 20X3, Clear Water Corporation received a $45,000, three-year, 6% note receivable from a customer for services performed. Interest is payable annually on June 30, with the first payment due on June 30, 20X4. The market rate for similar notes is 8%. Clear Water has a December 31 fiscal year end.
How much interest revenue should Clear Water recognize in the December 31, 20X3, fiscal year?