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JKL performed services for a customer in exchange for a $16,000, 10-year, 8% note receivable on...

  1. JKL performed services for a customer in exchange for a $16,000, 10-year, 8% note receivable on January 1, 2015. Interest will be paid semiannually, with the first payment at the end of the first six months. The customer’s normal borrowing rate for similar loans is 5%.

    Determine the carrying value of the note receivable on December 31, 2020 balance sheet.

    17,322

    17,721

    17,702

    None of the other answer choices is correct.

    18,100

    19,741
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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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