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13. On January 1, 20xl, ABC Co., acquired transportation equipment in exchange for cash of P100,000 and P1,000,000 noninterest-bearing note payable due in 4 equal annual installments starting December 31, 20x1. The prevailing rate of interest for this type of note is 12%. How much is the current portion of the note on December 31, 20x2? a. 158,880 b. 177,945 c. 199,298 d. 223,214

13. On January 1, 20xl, ABC Co., acquired transportation equipment in exchange for cash of P100,000 and P1,000,000 noninterest-bearing note payable due in 4 equal annual installments starting December 31, 20x1. The prevailing rate of interest for this type of note is 12%. How much is the current portion of the note on December 31, 20x2? a. 158,880 b. 177,945 c. 199,298 d. 223,214

FINANCIAL ACCOUNTING
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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13. On January 1, 20x1, ABC Co., acquired transportation equipment in exchange for cash of P100,000 and P1,000,000 noninterest-bearing note payable due in 4 equal annual installments starting December 31, 20x1. The prevailing rate of interest for this type of note is 12%. How much is the current portion of the note on December 31, 20x2? a. 158,880 b. 177,945 c. 199,298 d. 223,214
Transcribed Image Text:13. On January 1, 20x1, ABC Co., acquired transportation equipment in exchange for cash of P100,000 and P1,000,000 noninterest-bearing note payable due in 4 equal annual installments starting December 31, 20x1. The prevailing rate of interest for this type of note is 12%. How much is the current portion of the note on December 31, 20x2? a. 158,880 b. 177,945 c. 199,298 d. 223,214
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