4.ABC Co received from a customer a 3-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 10% and collectible in 3 equal annual installments beginning Dec 31, 20X1. PV of P1 at 10% for 3n= .75131 PV of an ordinary annuity P1 at 10% for 3n =2.48685 The carrying value of the note at Jan 1, 20X2 would be: 120,000 99,474 80,000 69,421
4.ABC Co received from a customer a 3-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 10% and collectible in 3 equal annual installments beginning Dec 31, 20X1. PV of P1 at 10% for 3n= .75131 PV of an ordinary annuity P1 at 10% for 3n =2.48685 The carrying value of the note at Jan 1, 20X2 would be: 120,000 99,474 80,000 69,421
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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34.ABC Co received from a customer a 3-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 10% and collectible in 3 equal annual installments beginning Dec 31, 20X1.
PV of P1 at 10% for 3n= .75131
PV of an ordinary annuity P1 at 10% for 3n =2.48685
The carrying value of the note at Jan 1, 20X2 would be:
PV of P1 at 10% for 3n= .75131
PV of an ordinary annuity P1 at 10% for 3n =2.48685
The carrying value of the note at Jan 1, 20X2 would be:
120,000
99,474
80,000
69,421
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