On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. in exchange for a promissory note requiring five annual payments of $1,000 each. The payments are to occur on December 31 of each year beginning on December 31, 2011. The note does not specify any interest, and there is no market for the note. Based on the credit worthiness of Villas Boas Co. and the length of the note, it is estimated that Villas Boas Co. would have to pay 10% interest if it borrowed a similar amount from a bank. During the year ended December 31, 2014, the carrying value of the note:
On December 31, 2010, Chelsea Co. provides a service
by | Mar 18, 2020 | Uncategorized
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