Please provide complete solutions. Thank you 9. On January 2, 2020, GRAPES Company sold equipment with a carryingamount of P480,000 in exchange for a P600,000 non-interest bearing note dueJan 2, 2023. There was no established exchange price for the equipment. Theprevailing rate of interest for a note of this type at January 2, 2020 was 10%. Thepresent value of 1 at 10% for three periods is 0.75. How much should GRAPESreport as gain(loss) on sale of equipment in its 2020 income statement? (If loss,put a negative sign before the numerical answer) *Your answer10. MELON Company purchased 1,000,P1,000, 10%, 5-year bonds of AVOCADOCompany. The bonds are dated January 1, 2020 and pay interest everyDecember 31. The bonds yield an 8% interest. The present value factors are asfollows: PV of 1 at 8% for 5 periods - 0.68; PV of 1 at 10% for 5 periods - 0.62; PVof an annuity of 1 at 8% for 5 periods - 3.99; PV of annuity of 1 at 10% for 5periods - 3.79. The bonds are quoted at 110 and 105 on December 31, 2020 and2021 respectively. Assuming the business model of the company is to managefinancial assets in order to collect contractual cash flows, what is the initialmeasurement of the investment in bonds on January 1, 2020? *

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9. On January 2, 2020, GRAPES Company sold equipment with a carrying amount of P480,000 in exchange for a P600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement? (If loss, put a negative sign before the numerical answer)* Your answer

9. On January 2, 2020, GRAPES Company sold equipment with a carrying amount of P480,000 in exchange for a P600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement? (If loss, put a negative sign before the numerical answer)* Your answer

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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