Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot Corp. on July 1, 2021. P1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four equal annual installments of P902,500 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? a. P594,500 b. P781,198 c. P659,895 d. P902,500
Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot Corp. on July 1, 2021. P1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four equal annual installments of P902,500 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? a. P594,500 b. P781,198 c. P659,895 d. P902,500
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot Corp. on July 1, 2021. P1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four equal annual installments of P902,500 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?
a. P594,500
b. P781,198
c. P659,895
d. P902,500
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