Question

The following note will be used for three questions on the exam: On December 31, 2020,...

The following note will be used for three questions on the exam:

On December 31, 2020, Templeton Consulting provided services valued at $12,500. In exchange, Templeton received $2,500 immediately and a note requiring the customer to make three equal annual payments, with the first payment to be made on December 31, 2021. The stated interest rate on the note is 10% and is considered reasonable.

Determine total interest revenue recognized over the life of the note?

$12,063

$10,000

$14,563

None of the other answer choices is correct.

$2,063

$3,000

$12,500
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The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

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