On January 1, 2010, Ball Co. exchanged equipment for a $160,000 zero-interest-bearing note due on January 1, 2013. The prevailing rate of interest…

On January 1, 2010, Ball Co. exchanged equipment for a $160,000 zero-interest-bearingnote due on January 1, 2013. The prevailing rate of interest for a note of this type atJanuary 1, 2010 was 10%. The present value of $1 at 10% for three periods is 0.75.What amount of interest revenue should be included in Abel’s 2011 income statement?ASK THIS QUESTION …