Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
See similar textbooks
icon
Related questions
Question

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

Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS