On January 1, 2014, PC purchased a used cement truck from EC. The carrying value of the truck on EC's books was P12,500. PC paid cash of P2,000 and gave a 2-year note that required semi-annual payments of P4,000 each payable at the end of each semi-annual period (the market rate of interest was 12 percent). A similar truck reportedly was sold recently for P14,000. PC Company should record the cost of the truck as:
On January 1, 2014, PC purchased a used cement truck from EC. The carrying value of the truck on EC's books was P12,500. PC paid cash of P2,000 and gave a 2-year note that required semi-annual payments of P4,000 each payable at the end of each semi-annual period (the market rate of interest was 12 percent). A similar truck reportedly was sold recently for P14,000. PC Company should record the cost of the truck as:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2014, PC purchased a used cement truck from EC. The carrying value of the truck on EC's books was P12,500. PC paid cash of
P2,000 and gave a 2-year note that required semi-annual payments of P4,000 each payable at the end of each semi-annual period (the
market rate of interest was 12 percent). A similar truck reportedly was sold recently for P14,000. PC Company should record the cost of the
truck as:
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