jolly industries issued a $1.8 million note payable to beckman construction in exchange for construction services. similar notes have an interest rate of 12 percent. beckman construction plans to construct the building with equal costs over the life of the note, thus equaling three annual payments of $600,000. what should beckman record as their discount on notes payable when the note is issued?

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07-10-2022
Business

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jolly industries issued a $1.8 million note payable to beckman construction in exchange for construction services. similar notes have an interest rate of 12 percent. beckman construction plans to construct the building with equal costs over the life of the note, thus equaling three annual payments of $600,000. what should beckman record as their discount on notes payable when the note is issued?

Sagot :

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