On January 1, 2021, Anna Company sold a piece of equipment to Banana Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P3,000,000. Banana is required to make four equal annual payments of principal plus interest. What is the interest income for the year 2022?

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A: Present value is the equivalent value today of the future money based on time value of money.Given:…

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A: We know that Interest is calculated on outstanding balance. Interest = Outstanding Balance x Rate of…

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A: The question demands the interest expense for the third year of the loan. In order to determine…

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A: Notes payable are long-term commitments that indicate the amount of money owing by a company to its…