Related to this note receivable,what amount of interest income would Siebens report on its 2012 income statement?
A) $1,000
B) $1,600
C) $800
D) $933

Question

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The note receivable has a face amount of $10,000 and a 12% interest rate. The note was issued on January 1, 2012, and matures on December 31, 2012. Interest is paid annually on December 31. The amount of interest income that Siebens would report on its 2012 income statement is $1,200 ($10,000 x 12%).

Related to This Note Receivable,what Amount of Interest Income Would