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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer this correctly. Thank you :)
![13. The Santol company sold some machinery to the Malabon Company on January 1, 2005. The
cash selling price would have been P3,791,000. Malabon entered into an installment sales
contract which required annual payments of P1,000,000 including interest at 10% over five
years. The first payment was due on December 31, 2005..
What amount of interest income should be included in Santol's 2007 income statement (the
third year of the contract)?
a. P241,800
b. P248,710
C.
P379,100
d.
P500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a7d90ec-a120-4e62-acd8-1dc5c1cd24c7%2F1fe689b8-7b7a-4573-9c8c-bf2ef91fe5a1%2Fnbzej3i_processed.png&w=3840&q=75)
Transcribed Image Text:13. The Santol company sold some machinery to the Malabon Company on January 1, 2005. The
cash selling price would have been P3,791,000. Malabon entered into an installment sales
contract which required annual payments of P1,000,000 including interest at 10% over five
years. The first payment was due on December 31, 2005..
What amount of interest income should be included in Santol's 2007 income statement (the
third year of the contract)?
a. P241,800
b. P248,710
C.
P379,100
d.
P500,000
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