Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022 2 pts The market interest for similar notes was 10% and the relevant present value factors are Present value of a single payment at 10% for 5 periods Present value of an ordinary annuity of 1 at 10% for 5 periods Present value of an annuity due of 1 at 10% for 5 periods 0.621 3.791 4.170 How much is the interest income for the year 20227 158.500
Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022 2 pts The market interest for similar notes was 10% and the relevant present value factors are Present value of a single payment at 10% for 5 periods Present value of an ordinary annuity of 1 at 10% for 5 periods Present value of an annuity due of 1 at 10% for 5 periods 0.621 3.791 4.170 How much is the interest income for the year 20227 158.500
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 27E
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Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022 2 pts The market interest for similar notes was 10% and the relevant present value factors are Present value of a single payment at 10% for 5 periods Present value of an ordinary annuity of 1 at 10% for 5 periods Present value of an annuity due of 1 at 10% for 5 periods 0.621 3.791 4.170 How much is the interest income for the year 20227 158.500
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