On January 1, 2020, Ann Price acquired property (land) by si…
On January 1, 2020, Ann Price acquired property (land) by signing a zero (non) -interest-bearing note (face amount, $250,000); no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount should Ms. Price use to record the value of the property on the date of acquisition (1/1/2020)?