On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of P320,000 on the date of sale. CPA received as consideration for the sale, a P800,000 noninterest-bearing note due January 1, 2025. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type on January 01, 2021 was 5%. Using two decimal places for the present value (PV) factor, what is the note’s carrying amount on December 31, 20
On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of P320,000 on the date of sale. CPA received as consideration for the sale, a P800,000 noninterest-bearing note due January 1, 2025. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type on January 01, 2021 was 5%. Using two decimal places for the present value (PV) factor, what is the note’s carrying amount on December 31, 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3. On January 01, 2021, CPA Company sold equipment costing P760,000 with
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