On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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