O O O O O Section 1: General Information X GIn the three-stage mpairm QLSfelWr2G3Yy-WzMesbLH8bwuZF1cS 9Fuvofcq8GL2f5tEFFA/formResponse Clear se On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year P500,000, 10% note to State Co. The note requires interest to be paid annually every December 31 starting December 31, 2022 until the maturity of the note on December 31, 2026. The equipment has a cost of P1,000,000 and accumulated depreciation as of January 1, 2022 of P550,000. The prevailing interest rate for a note of this type is 12%What amount should be reported as gain (loss) on sale of equipment? (Round off PV factors to four decimal places.) O13,940 gain O13,940 loss O50,000 gain O50,000 loss O Answer not given True or False (PAS 41) to

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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O O O O O
Section 1: General Information
X
GIn the three-stage mpairm
QLSfelWr2G3Yy-WzMesbLH8bwuZF1cS 9Fuvofcq8GL2f5tEFFA/formResponse
Clear se
On January 1, 2022, State Co. sold an equipment to Nation Co. The latter
issued a five-year P500,000, 10% note to State Co. The note requires
interest to be paid annually every December 31 starting December 31,
2022 until the maturity of the note on December 31, 2026. The equipment
has a cost of P1,000,000 and accumulated depreciation as of January 1,
2022 of P550,000. The prevailing interest rate for a note of this type is
12%What amount should be reported as gain (loss) on sale of equipment?
(Round off PV factors to four decimal places.)
O13,940 gain
O13,940 loss
O50,000 gain
O50,000 loss
O
Answer not given
True or False (PAS 41)
to
Transcribed Image Text:O O O O O Section 1: General Information X GIn the three-stage mpairm QLSfelWr2G3Yy-WzMesbLH8bwuZF1cS 9Fuvofcq8GL2f5tEFFA/formResponse Clear se On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year P500,000, 10% note to State Co. The note requires interest to be paid annually every December 31 starting December 31, 2022 until the maturity of the note on December 31, 2026. The equipment has a cost of P1,000,000 and accumulated depreciation as of January 1, 2022 of P550,000. The prevailing interest rate for a note of this type is 12%What amount should be reported as gain (loss) on sale of equipment? (Round off PV factors to four decimal places.) O13,940 gain O13,940 loss O50,000 gain O50,000 loss O Answer not given True or False (PAS 41) to
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