Question

A company receives a two-year, zero-interest-bearing note with a face value of $200,000 from another company in exchange for property that has a fair value of $140,000 and a book value of$115,000.What is the net value of notes receivable?

a. $85,000
b. $115,000
c. $140,000
d. $200,000

Answer 1

c. $140,000

Step-by-step explanation:

Based on the information given we were told that zero-interest-bearing note with a face value of the amount of $200,000 was received from another company in exchange for property that has a fair value of the amount of $140,000 which means that the fair value amount of $140,000 will be the net value of notes receivable

Therefore the net value of notes receivable will be $140,000