On January 1, 2021, Abba Company sold a piece of equipment to Bacus Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P4,000,000. Bacus is required to make four equal annual payments of principal plus interest. What is the total proceeds for the year 2023?

On January 1, 2021, Abba Company sold a piece of equipment to Bacus Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P4,000,000. Bacus is required to make four equal annual payments of principal plus interest. What is the total proceeds for the year 2023?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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