in exchange for a noninterest bearing note requiring eight Problem 23-15 (AICPA Adapted) On December 31, 2020, Bart Company purchased a machine payments of P200,000. The first payment was made on December 31, 2020 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for thi type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What is the discount on note payable on December 31, 2020? a 657,600 b. 457,600 c. 570,800 d. 3. What is the interest expense for 2021? a 125,664 b. 103,664 c. 113,212 d. 176,000
in exchange for a noninterest bearing note requiring eight Problem 23-15 (AICPA Adapted) On December 31, 2020, Bart Company purchased a machine payments of P200,000. The first payment was made on December 31, 2020 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for thi type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What is the discount on note payable on December 31, 2020? a 657,600 b. 457,600 c. 570,800 d. 3. What is the interest expense for 2021? a 125,664 b. 103,664 c. 113,212 d. 176,000
Chapter2: Working With The Tax Law
Section: Chapter Questions
Problem 35P
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![6:41
+ Module1_PPE...
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1546/1822
Email Address: president@g.batstate-u.edu.ph Website Address: http://www.batstate-u.edu.
Problem 23-15 (AICPA Adapted)
On December 31, 2020, Bart Company purchased a machin,
in exchange for a noninterest bearing note requiring eight
payments of P200,000.
The first payment was made on December 31, 2020 and
the others are due annually on December 31.
At date of issuance, the prevailing rate of interest for thi,
type of note was 11%.
PV of an ordinary annuity of 1 at 11% for 8 periods 5.146
PV of an annuity of 1 in advance at 11% for 8 periods 5.712
1. What amount should be recorded as initial cost of the
machine?
a 1,600,000
b. 1,029,200
c. 1,400,000
d. 1,142,400
2. What is the discount on note payable on December 31,
2020?
a. 657,600
b. 457,600
c. 570,800
d.
3. What is the interest expense for 2021?
a. 125,664
b. 103,664
c. 113,212
d. 176,000
4. What is the carrying amount of note payable on
December 31, 2021?
a. 942,400
b. 846,064
c. 742,400
d. 742,412
UNIV
AISSIAT
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Batangas City
Tel Nos.: (+63 43) 980-0385: 980-0387: 980-0392 to 94: 425-7158 to 62 loc. 1546/1822](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a81ae87-b2f2-4b38-96a1-c8d35580cbe2%2Fbadfcfd8-7170-44c5-9079-1c04b49b1404%2Fe456vnw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6:41
+ Module1_PPE...
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1546/1822
Email Address: president@g.batstate-u.edu.ph Website Address: http://www.batstate-u.edu.
Problem 23-15 (AICPA Adapted)
On December 31, 2020, Bart Company purchased a machin,
in exchange for a noninterest bearing note requiring eight
payments of P200,000.
The first payment was made on December 31, 2020 and
the others are due annually on December 31.
At date of issuance, the prevailing rate of interest for thi,
type of note was 11%.
PV of an ordinary annuity of 1 at 11% for 8 periods 5.146
PV of an annuity of 1 in advance at 11% for 8 periods 5.712
1. What amount should be recorded as initial cost of the
machine?
a 1,600,000
b. 1,029,200
c. 1,400,000
d. 1,142,400
2. What is the discount on note payable on December 31,
2020?
a. 657,600
b. 457,600
c. 570,800
d.
3. What is the interest expense for 2021?
a. 125,664
b. 103,664
c. 113,212
d. 176,000
4. What is the carrying amount of note payable on
December 31, 2021?
a. 942,400
b. 846,064
c. 742,400
d. 742,412
UNIV
AISSIAT
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Batangas City
Tel Nos.: (+63 43) 980-0385: 980-0387: 980-0392 to 94: 425-7158 to 62 loc. 1546/1822
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