On January 1, 2012, Ann Price loaned $90,156 to Joe Kiger.
A zero-interest-bearing note (face amount, $120,000) was exchanged solely for cash; no other rights or privileges were exchanged.
The note is to be repaid on December 31, 2014. The prevailing rate of interest for a loan of this type is 10%.
The present value of $120,000 at 10% for three years is $90,156. What amount of interest income should Ms. Price recognize in 2012?