On January 1, 2020, Hong Company sold to Kong Company. There was no established market price for the land. Kong gave Hong a P2,400,000 noninterest bearing notes payable on December 31, 2022. The note has no ready market. The prevailing interest rate of this type is 10%. What is the carrying amount of the note payable on December 31, 2021? (use 4-decimal places for PV factor and round off the final answer to whole number)
On January 1, 2020, Hong Company sold to Kong Company. There was no established market price for the land. Kong gave Hong a P2,400,000 noninterest bearing notes payable on December 31, 2022. The note has no ready market. The prevailing interest rate of this type is 10%. What is the carrying amount of the note payable on December 31, 2021? (use 4-decimal places for PV factor and round off the final answer to whole number)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Hong Company sold to Kong Company. There was no established market price for the land. Kong gave Hong a P2,400,000 noninterest bearing notes payable on December 31, 2022. The note has no ready market. The prevailing interest rate of this type is 10%. What is the carrying amount of the note payable on December 31, 2021? (use 4-decimal places for PV factor and round off the final answer to whole number)
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