Due to adverse economic circumstances andSecondProblem 9-17 (IAA)poora restructuring of a 996 P6,000,000 note payable toon the note on January 1, 2020.to P5,000,000 and extended the maturity to three yearDecember 31, 2022.onevery December 31.1periods is 2.53.newonJanuary 1, 2020?a. 6,000,000b. 5,000,000c. 5,494,500d. 3,850,0002. What is the gain on modification of debt to be recognizedfor 2020?500,000b. 350,000505,500d.a.с.3. What is the interest expense for 2020 as a result of themodification?a. 650,000b. 450,000c. 494,505d. 540,000326

Prevent value: Present value is the sum of the current value of money of future cash flows. It is…

1. January 1, 2020? a. 6,000,000 b. 5,000,000 c. 5,494,500 d. 3,850,000 2. What is the gain on modification of debt to be recogni for 2020? a. 500,000 b. 350,000 505,500 d. с. 3. What is the interest expense for 2020 as a result o modification? a. 650,000

1. January 1, 2020? a. 6,000,000 b. 5,000,000 c. 5,494,500 d. 3,850,000 2. What is the gain on modification of debt to be recogni for 2020? a. 500,000 b. 350,000 505,500 d. с. 3. What is the interest expense for 2020 as a result o modification? a. 650,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Due to adverse economic circumstances and
Second
Problem 9-17 (IAA)
poor
a restructuring of a 996 P6,000,000 note payable to
on the note on January 1, 2020.
to P5,000,000 and extended the maturity to three year
December 31, 2022.
on
every December 31.
1
periods is 2.53.
new
on
January 1, 2020?
a. 6,000,000
b. 5,000,000
c. 5,494,500
d. 3,850,000
2. What is the gain on modification of debt to be recognized
for 2020?
500,000
b. 350,000
505,500
d.
a.
с.
3. What is the interest expense for 2020 as a result of the
modification?
a. 650,000
b. 450,000
c. 494,505
d. 540,000
326

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