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. 6,895,291
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. 6,895,291
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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