January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Periods Present Value of 1 at 10% PV of ordinary Annuity of 1 at 10% 6 0.56447 4.35526 7 0.51315 4.86842 What should be the amortized cost of the receivable on December 31, 2018?
January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Periods Present Value of 1 at 10% PV of ordinary Annuity of 1 at 10% 6 0.56447 4.35526 7 0.51315 4.86842 What should be the amortized cost of the receivable on December 31, 2018?
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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January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on
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