Spurt Company issued a 3-year,non-interest-bearing note on January 1,2010.At what amount should the note be reported on the December 31,2010,balance sheet?

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A non-interest-bearing note is reported at its present value (face amount minus the discount) on the issuance date. Over time, the discount is amortized, increasing the book value of the note towards its face value. On the December 31, 2010 balance sheet, the note should be reported at the face amount minus the unamortized portion of the discount.

Spurt Company Issued a 3-Year,non-Interest-Bearing Note on January 1,2010