Cubao Short Ribs Company sold a tract of land with carrying amount of $3,000,000 to Anonas Pot Corp. on July 1, 2021. $1,200,000 was collected on the date of sale, and the balance of $2,800,000 is collectible in four equal annual installments of $902,500 consisting of principal and 11% interest on the unpaid balance. The first installment is due on July 1, 2022. What amount related to the notes receivable shall be classified as current assets on December 31, 2022?
Cubao Short Ribs Company sold a tract of land with carrying amount of $3,000,000 to Anonas Pot Corp. on July 1, 2021. $1,200,000 was collected on the date of sale, and the balance of $2,800,000 is collectible in four equal annual installments of $902,500 consisting of principal and 11% interest on the unpaid balance. The first installment is due on July 1, 2022. What amount related to the notes receivable shall be classified as current assets on December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cubao Short Ribs Company sold a tract of land with carrying amount of $3,000,000 to Anonas Pot Corp. on July 1, 2021. $1,200,000 was collected on the date of sale, and the balance of $2,800,000 is collectible in four equal annual installments of $902,500 consisting of principal and 11% interest on the unpaid balance. The first installment is due on July 1, 2022. What amount related to the notes receivable shall be classified as current assets on December 31, 2022?
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