On December 31, 2010, Green Company finished consultation services and accepted inexchange a promissory note with a face value of P300,000, a due date of December 31, 2013,and a stated rate of 5%, with interest receivable at the end of each year. The fair value of theservices is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% The carrying amount of the note receivable as of December 31, 2020 is a. 262,694 b. 247,920 c. 300,000 d. 273,953
On December 31, 2010, Green Company finished consultation services and accepted inexchange a promissory note with a face value of P300,000, a due date of December 31, 2013,and a stated rate of 5%, with interest receivable at the end of each year. The fair value of theservices is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% The carrying amount of the note receivable as of December 31, 2020 is a. 262,694 b. 247,920 c. 300,000 d. 273,953
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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655. On December 31, 2010, Green Company finished consultation services and accepted inexchange a promissory note with a face value of P300,000, a due date of December 31, 2013,and a stated rate of 5%, with interest receivable at the end of each year. The fair value of theservices is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%
The carrying amount of the note receivable as of December 31, 2020 is
a. 262,694
b. 247,920
c. 300,000
d. 273,953
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