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On January 1, 2017, Liza Corporation received P1,000,000 on a noninterest-bearing note due in three years. The market rate of interest on such date is 10%. The entity irrevocably elected the fair value option in measuring the notes payable. On December 31, 2017, the risk factors indicated that the rate of interest applicable to the borrowing was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? PV factor 10%, 3p       .751            PV factor 9%, 3p         .772 PV factor 10%, 2p       .826            PV factor 9%, 2p         .842 PV factor 10%, 1p       .909            PV factor 9%, 1p         .917

On January 1, 2017, Liza Corporation received P1,000,000 on a noninterest-bearing note due in three years. The market rate of interest on such date is 10%. The entity irrevocably elected the fair value option in measuring the notes payable. On December 31, 2017, the risk factors indicated that the rate of interest applicable to the borrowing was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? PV factor 10%, 3p       .751            PV factor 9%, 3p         .772 PV factor 10%, 2p       .826            PV factor 9%, 2p         .842 PV factor 10%, 1p       .909            PV factor 9%, 1p         .917

FINANCIAL ACCOUNTING
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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On January 1, 2017, Liza Corporation received P1,000,000 on a noninterest-bearing note due in three years. The market rate of interest on such date is 10%. The entity irrevocably elected the fair value option in measuring the notes payable. On December 31, 2017, the risk factors indicated that the rate of interest applicable to the borrowing was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017?

PV factor 10%, 3p       .751            PV factor 9%, 3p         .772

PV factor 10%, 2p       .826            PV factor 9%, 2p         .842

PV factor 10%, 1p       .909            PV factor 9%, 1p         .917

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