R Company was indebted to A Inc.at January 1, 2014.The note called for a $25,000 payment to be made on December 31, 2014 and also on December 31, 2015.The note was non-interest bearing yet 10% was the prevailing rate at the time the note was issued.What is the book value of the note on R's January 1, 2014 balance sheet (rounded)?
A)$50,000
B)$38,962
C)$47,727
D)$43,388
E)$47,500

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The Answer of R Company was indebted to A Inc.at January 1, 2014.The note called for a $25,000 payment to be made on December 31, 2014 and also on December 31, 2015.The note was non-interest bearing yet 10% was the prevailing rate at the time the note was issued.What is the book value of the note on R's January 1, 2014 balance sheet (rounded)?
A)$50,000
B)$38,962
C)$47,727
D)$43,388
E)$47,500

R Company Was Indebted to a Inc