For the next two items: A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down payment of P1,000,000 and a 4-year, 12%note for the balance. The note is payable in equal annual payments of principal and interest of P1,975,400 payable on December 31 of each year until 2019. 20. What is the interest income for 2017? a. 840,000 b. 720,000 c. 569,352 d. 975,400 21. What is the carrying amount of the note receivable on December 31, 2017? a. 4,500,000 b. 4,744,600 c. 3,338,552 d. 4,025,600

For the next two items: A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down payment of P1,000,000 and a 4-year, 12%note for the balance. The note is payable in equal annual payments of principal and interest of P1,975,400 payable on December 31 of each year until 2019. 20. What is the interest income for 2017? a. 840,000 b. 720,000 c. 569,352 d. 975,400 21. What is the carrying amount of the note receivable on December 31, 2017? a. 4,500,000 b. 4,744,600 c. 3,338,552 d. 4,025,600

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

For the next two items:
A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down
payment of P1,000,000 and a 4-year, 12%note for the balance.
The note is payable in equal annual payments of principal and interest of P1,975,400 payable on
December 31 of each year until 2019.
20. What is the interest income for 2017?
a. 840,000
b. 720,000
c. 569,352
d. 975,400
21. What is the carrying amount of the note receivable on December 31, 2017?
a. 4,500,000
b. 4,744,600
c. 3,338,552
d. 4,025,600
E D1 c00 000

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