On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2020. The prevailing rate of interest for this type of note is 12%. How much is the interest income in 2017?
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- On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2020. The prevailing rate of interest for this type of note is 12%. How much is the carrying amount of the receivable on December 31, 2018?On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated depreciation of P150,000 in exchange for a 3-year, P1,800,000 noninterest bearing note receivable due on December 31, 2020. The prevailing market rate of interest for this type of note is 12%.How much is the interest income for 2018?10. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2023. The prevailing rate of interest for this type of note is 12%. How much is the carrying amount of the receivable on December 31, 2021?a. 800,000 b. 569,424c. 714,286d. 637,755 11. Present value isa. the value now of a future amount.b. the amount that must be invested now to produce a known future value.c. always smaller than the future value.d. all of these. 12. A higher interest rate results toa. increased amount of present value.b. decreased amount of present value.c. same amount of present value.d. Answer cannot be determined due to insufficient data PLEASE ANSWER IMMEDIATELY
- Fill in the blanks: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note receivable in a lump sum payment on December 31, 2024. The prevailing interest rate for this type of note is 10%. How much is the carrying amount of the note on January 1, 2021? How much is the unearned income on Dec 31, 2022? ( Previous Continue >On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for a 600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position?What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual installments as follows: December 31. 2022 - 3, 000, 000 December 31, 2023 - 2, 000, 000 December 31 2024 - 1, 000, 000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022, was 10%. (Round off present value factors to four decimal places.
- On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131. What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 $69872 O $0 O $76859What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000. (use fraction method) How much in the unearned income on December 31, 2023? What is the denominator of the fraction used to distribute the unearned interest? ( Previous Continue >
- On January 1, 2020 West Co. exchanged equipment for an $800,000 non-interest-bearing note due on January 1, 2023. The market rate of interest for this type of note at January 1, 2020 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in West's 2021 income statement?On January 1, 2021, ABC Co. sold transportation equipment with a historical cost of P12,000,000 and accumulated depreciation of P7,000,000 in exchange for a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments starting on December 31, 2021 and every December thereafter. The prevailing rate of interest for this type of note is 12%. 63)How much is the present value of note on January 1,2021? a. 3,037,349 b. 2,542,072 64)How much is the interest income in 2021? a. 805,924 b. 305,047 c. 3,401,831 d. 7,049,367 c. 396,882 d. 288,220 65)How much is the carrying amount of the receivable on December 31, 2021? a. 1,690,510 b. 2,401,830 66)How much is the current portion of notes receivable on December 31, 2021? a. 154,076 b. 635,518 67)How much is the current portion of notes receivable on December 31, 2021? a. 2,401,831 b. 1,847,121 c. 2,690,051 d. 2,847,120 c. 694, 951 d. 591,780 c. 2,810,051 d. 6,895,291Solar Co. sold a machine in exchange for a P800,000, 4-year, S note, interest is payable annually. Prevailing market rate of interest for this type of note is 10% wrt How much is the carrying amount of the note receivable on January 1, 2021? How much is the carrying amount of the note receivable on December 31, 2021? ments How much is the interest income received on December 31, 2023? ences ( Previous ssors dents