Business, 10.02.2020 21:59 cair6415

A creditor's note receivable has a carrying value of $60,000 at the end of Year 1. Based on information about the debtor, the creditor believes the note is impaired and establishes the new carrying value of the note to be $25,000 at the end of Year 1. During Years 2 and 3, the debtor pays $14,000 on the note each year (total payments, $28,000). For Year 3, under which method of the two indicated is interest revenue recognized?
Interest Method Cost Recovery Method
a. Yes Yes
b. No No
c. Yes No
d. No Yes

Answers: 3

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A creditor's note receivable has a carrying value of $60,000 at the end of Year 1. Based on informat...