On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 every end of the year. The effective rate is 12% What is the present value of the note on January 1, 2021?

On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 every end of the year. The effective rate is 12% What is the present value of the note on January 1, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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